Buy Aurobindo Pharma; target of Rs 260: Way2Wealth
Way2Wealth is bullish on Aurobindo Pharma and has recommended buy rating on the stock with a target price of Rs 260, in its research report dated October 01, 2013.
October 01, 2013 / 18:21 IST
Way2Wealth's report on Aurobindo Pharma
Aurobindo Pharma has provided a clear breakout from a triangular pattern with an increase in volumes which is a bullish sign for it in the medium term. However, there is a resistance near 209.55 levels, so we recommend initiating long positions in it above 210 levels. The crucial support on the lower side is its previous swing high of 195.80 which almost coincides with another swing low of 194.10, hence 194 is the ideal stop loss for this trade. Now, the target of the triangle comes to 325, but we are targeting the upper end of the rising channel i.e. 260 levels. The Bollinger bands have started to expand which is another bullish signal for the stock. The momentum indicator MACD has come into buy mode again on the weekly charts after reversing from the zero reference line. In fact, it has formed a double bottom at the zero reference line and this increases the probability of an upside in the stock.Investment Strategy:
Buy Aurobindo Pharma above 210 for the target of 260 with a stop loss of 194
Risk: Reward = 1:3.125
Risk: 201 – 194 = 16
Reward: 260 – 210 = 50Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
