Technical Stock Pick: Should you buy this FY24 multibagger pharma stock after recent dip?

Aurobindo Pharma, a part of the pharma house, has rallied greater than 100% in FY24 however discovered some resistance above Rs 1,100 ranges in January 2024.

The inventory underwent worth sensible correction since January 2024 and is now exhibiting indicators of bottoming out which means that bulls are able to take the cost once more.

Brief-term merchants can look to purchase the inventory now for a doable goal above Rs 1,300 ranges within the subsequent 3-Four weeks, counsel consultants.

The pharma inventory rose from Rs 518 recorded on March 31, 2023, to Rs 1,112 as on 1st April 2024 which translaates into an increase of greater than 114%.

Monitoring the momentum, the inventory hit a document excessive of Rs 1,177 on 30th January 2024, but it surely failed to carry on to the momentum.

The inventory witnessed a light selloff however managed to search out help above Rs 1,000 ranges in February after which once more in March 2024 which resulted in a double backside formation on the weekly charts.When it comes to worth motion, the inventory is buying and selling above essential short- and long-term shifting averages equivalent to 5,10,30,50,100 and 200-DMA on the each day charts which is a constructive signal for the bulls.

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The each day Relative Energy Index (RSI) is at 64.4. RSI under 30 is oversold and above 70 is taken into account overbought, Trendlyne information confirmed. The each day MACD is above its heart and sign line, it is a bullish indicator.

“Aurobindo Pharma has maintained a strong worth construction, displaying a transparent uptrend since February 2023, characterised by constant greater highs and better lows,” Vidnyan S Sawant, Head of Analysis, GEPL Capital, stated.

“After a wholesome retracement from January 2024 following a pointy upward transfer, the inventory has discovered help on the 26-week exponential shifting common, suggesting a imply reversion state of affairs,” he stated.

“Moreover, a change of polarity has been noticed, the place the resistance of Could 2021 now acts as a powerful help, signaling a continuation of the upward momentum,” highlighted Sawant.

“On the each day scale, the inventory has shaped a double backside formation, indicating alignment between decrease and better timeframes for an upward trajectory,” beneficial Sawant.

(Disclaimer: Suggestions, strategies, views, and opinions given by consultants are their very own. These don’t characterize the views of the Financial Instances)

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