MSCI revision: CG Power, Bank Baroda look bullish on charts; avoid Biocon

Biocon share may slip up to 21 per cent if breaks 52-week low

In the recent review, Morgan Stanley Capital International (MSCI) added Bank of Baroda and CG Power and Industrial Solutions, while excluded Biocon from its India Index. MSCI evaluates its indices on a semi-annually and quarterly basis. 

This move shall bring cheers to investors whose stocks are included in MSCI, as more inflows are expected, leading to a rise in the stock price. Likewise, stocks excluded from the index see outflows, inevitably resulting in a sell-off from a short term perspective. 

Meanwhile, the stock price performance of CG Power and Industrial Solutions has been fearless, despite the benchmark indices, BSE Sensex and Nifty 50, hitting a new 2-month low. Since the start of CY2023, the stock has surged over 20 per cent, while indices have plummeted 1.50 per cent. 

While Bank of Baroda has plunged 8.60 per cent this year, the stock has managed to float over the 200-day moving average (DMA), which trading community opt to determine bullish and bearish sentiment.

On the other hand, shares of Biocon have immensely disappointed the street. Since late December 2020, the stock has been on a downward spiral and has lost 50 per cent share value. 

Here's the technical outlook of these stocks :-

CG Power and Industrial Solutions Ltd (CGPOWER)

Likely target: Rs 400

Upside potential:  17%

Shares of CG Power and Industrial Solutions have reached a new all-time high on Monday, further confirming the resilient bullishness. Now, unless the counter falls beneath Rs 300 on aggressive volumes, the price action is expected to rally in the direction of Rs 400, a medium-term perspective. 

The volumes have seen a gradual increase, reflecting accumulations and positive interest of market participants.  The stock has not violated the 200-DMA since August 2020, thus revealing a prominent upward trend which is expected to stay robust, until this moving average is defended. CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA)

Outlook: Hurdle at Rs 180
 

Shares of Bank of Baroda are currently dealing with the trendline hurdle situated at Rs 180 level. Until this mark is negated on the upside, the trend could stumble upon provoked selling pressures.  While the candlestick formations point to a support at Rs 155, which has held the recent weakness, the bullish bias may extend strength only once the hurdle mark is conquered.  The medium-term outlook is well-placed over the significant 200-DMA, set at Rs 137 levels. 

A breakout over Rs 180 could propel stock in the direction of Rs 190 and Rs 200 levels. CLICK HERE FOR THE CHART

Biocon Ltd (BIOCON)

Likely target: Rs 200 and Rs 180 ( post reaching new 52-week low)

Downside potential:  12% to 21%

Biocon shares are trading in a bear grip across all technical charts. Be it moving averages or indicators, the stock has lost the upside hold.  The stock has failed to form a base despite rising above the oversold territory of Relative Strength Index (RSI), as per the daily chart. 

Moreover, there is a “Death Cross” formation on the weekly chart, advising selling pressure to stay elevated unless stock halts beneath crucial obstacles. There is a strong selling pressure exists in the range of Rs 300 to Rs 275, as per the weekly setup.

If the stock hits a new 52-week low slipping under Rs 229.65 level, fresh sell-off may push this stock towards Rs 200 and Rs 180. CLICK HERE FOR THE CHART