Rationale

* Pharma stocks again remained one of the star performers like last year with most of them remaining in focus due to rising Covid-19 cases

* Leaders like Sun Pharma, Cipla, Dr Reddy’s and Lupin already saw positive price action whereas Biocon is one stock that largely remained under pressure below | 420 since January 2021

* In the current leg of consolidation, the stock has been hovering near its higher band of | 420 whereas it saw closure in OI, which could be a positive trigger

* Sizeable Call OI base is placed at | 420. However, short covering is likely to accelerate once the stock manages to close above this level

* Hence, we feel Biocon is likely to move towards | 460 levels for the April series with follow up buying expected in the stock. Due to uncertainty and higher volatility, we recommend forming Collar option spread where downside is protected and risk: reward remains good

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