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Aurobindo Pharma Technical Analysis #33: Buy | Target Rs 800 | Arijit Banerjee

OUR RECOMMENDATION

CMP#746.1
IdeaBUY
Buy Range729 – 736
Target780 – 800
StopLoss*700
Duration20 – 25 Trading Sessions
Potential Return^6 – 9%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
736.1BUY729 – 736780 – 80070020 – 25 Trading Sessions6 – 9%

# CMP on Mar 05, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 758.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Incorporated in 26th December 1986, this generic drug manufacturing company is developing, manufacturing and marketing 7 major product areas encompassing Antibiotics, Anti-Retro Virals, CVS, CNS, Gastroenterological, Anti-Allergics and Anti-Diabetics. The vast majority of the company’s sales are generated in India, followed by the United States and globally in over 150 countries. In Q3FY19, the company has reported Profit After Tax at Rs 712 crore vs Rs 595 crore YOY. The consolidated revenue rose at Rs 5270 crore as against 4336 crore the year-ago period.

Stock Data
NSE CodeAUROPHARMA
Sectoral IndexNifty Pharma
52W High830.45
52W Low527
Face Value1
Relative Performance_Aurobindo Pharma vs Nifty Pharma Index

TECHNICAL OBSERVATIONS (WEEKLY)

  • Attached weekly timeframe chart of Aurobindo Pharma Ltd is signalling that the stock price was moving in a larger consolidation pattern in the last many months.
  • Currently, the price is near Lower bound of the consolidation range. Historical evidence suggests robust upside movement from here.
Aurobindo Pharma Weekly Chart
Aurobindo Pharma Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Daily Price has given breakout from the downward sloping channel as shown in the picture.
  • The stochastic oscillator is deep in an oversold indicating bounce from current levels.
Aurobindo Pharma Daily Chart
Aurobindo Pharma Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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