Stock Analysis Report: Aurobindo Pharma Ltd.Overview:
The chart presents a technical analysis of Aurobindo Pharma Ltd. on a daily timeframe. The stock shows a recovery pattern with a visible RSI divergence, indicating a potential bullish reversal.
Key Observations:
1.RSI Divergence:
A bullish divergence is identified as the price made lower lows while the RSI formed higher lows, signaling waning bearish momentum and the likelihood of an upward move.
2.Critical Support Levels:
Immediate support is marked at ₹1,273.35, corresponding to the 200-day moving average.
A strong base exists at ₹1,199.40 and ₹1,101.55, which acted as previous demand zones.
3.Potential Resistance Zones:
Initial resistance levels are observed at ₹1,310.80 and ₹1,346.60.
Major resistance is seen at ₹1,403.25 and ₹1,450.35, where the stock could face selling pressure.
4.Buying Strategy:
Enter long positions only if the price stabilizes above ₹1,273.35, confirming support.
Watch for a breakout above ₹1,310.80 for momentum trades targeting higher resistance levels.
5.Volume Analysis:
Increased volume on recent upward moves supports the bullish sentiment.
Monitor volume patterns for confirmation of breakouts or trend reversals.
Conclusion:
Aurobindo Pharma shows signs of a potential bullish reversal. Traders should closely observe the ₹1,273.35 support level and enter only upon confirmation. Targets are placed at ₹1,310.80, ₹1,346.60, and beyond. Implement proper risk management to account for potential volatility.
