Aurobindo Pharma has target of Rs 132: Bhamre

Bhamre told CNBC-TV18, "If you look at Aurobindo Pharma there has been a significant short covering on a day when it went up by 10% and it has been consolidating and rightly to its nature of being in defensive space we are seeing that some kind of formation of long positions which is happening around current levels. I have a aggressive price target but as of now I will limit myself only to Rs 132 on the upside. We are seeing good amount of cash base volume as well. So stop loss of Rs 106 and target of Rs 132 as of now in Aurobindo Pharma."

He further added, "It's a kind of contra bit, slightly risky one. The correction was happening because of formation of short positions and now with further dips we are seeing those short positions are getting covered. People would usually read it as long unwinding but I think it's more a short covering which is happening at falls. We don’t see significant downside below Rs 52 so that’s the reason we are suggesting that there is possibility of bounce back and cash based buying. So a target price of Rs 64 and a stop loss of Rs 50 is recommended in Essar Oil ."

Disclaimer: I have recommended Aurobindo Pharma to lot of our clients.