AUROPHARMA cautious LongAUROPHARMA cautious Long above the purple line .. Pharma stocks should outperform NIFTY
AUROPHARMA
Possible Elliot Wave Count - AuroPharmaAuroPharma is in a long term bull market of which we could be in wave 5 of a larger wave 3. It is highly likely that we finished the wave 4 of 3 at 503 and resumed the uptrend. The move 503-806 looks impulsive but it is also possible that it could be wave B rather than the wave 1 but that will be my secondary count. My primary count suggests we have completed wave 1 and we are in wave 2 of the new impulse which started from 503.For long term investors it will be worthwhile to add some portion of your capital towards AuroPharma around 665-640 area. AuroPharma has to move above 895 to complete any long term wave pattern as the structure at the top is that of an ir-regular correction. Minimum target on the upside could be 940 but it could extend all the way up to 1200 or more.
Good Luck!!!
Aurobindo Pharma - Excellent buy at current levels!Aurobindo Pharma is another great company one should have in their investment portfolio and this is a very good time to buy/add this stock around 580-600 levels.
Expecting it to give 20% + returns annually from here and wouldn't be surprised if it is much more than that..
Aurobindo Pharma, Dark horse among Pharma Space, Accumulate!!Ongoing Pharma/Drug Stance from Trump may force Indian Pharma Space into a short term downtrend, Aurobindo's foothold is strong in Europe than US, they plan to expand more in Europe than US. if available within Accumulation range, one should buy and hold for medium to long term!!
NIFTY - Overfed And Then A Kick In The Guts - 12/21/2016First come the hype of rising economy under the sobriquet - BRICKS. That hype got extra air in the balloon by loquacious leader. Party started with free money provided by QE ( courtesy of Fed ) would have still been rolling if it hasn't got the kick in the gut by demagogy and populist pandering. Being long Indian stocks is dangerous especially in the face of rising dollar and very positive US investment sentiment. Well, a day of reckoning will come for US stocks too but until that arrives, people will take their money back and invest it back into the world's best market to invest during the rising yield.
Individual components of the NIFTY have been massively overpriced and entire balloon can come crashing down. To rekindle the positive bias, NIFTY must regain the territory above 8250. And even after that, 8500 is a big wall to crack. So our bias for the stocks is negative. We are short the broader index with selective exploitation of support levels with buy-side trades.
As we did with 8000 support level, we are willing to dabble with long trade near 7750 and 7500. So in short, neutral between 8000 - 8200, short near 8500 and long near 7750 / 7500.
Besides, for individual stocks we are always eager to buy from good support levels during the rout. E.g. our pending trade in AUROPHARMA
AUROPHARMA - Gravity Is Catching Up - 12/16/2016Auropharma - Aurobindo Pharma had an impressive run from 100 to 900 in two years. We believe that Pharma sector will always do good in India and have mentioned the reasons for that numerous times in the blog here. Big pharmaceutical companies around the world will keep on outsourcing manufacturing to Indian pharma companies because of cheap labor, lax regulation regarding pollution and to diversify the supply chain. Besides, Indian companies have huge market in Africa where drug quality standards are not that stringent.
Simple play-book to trade pharma stocks in India is to,
1. ) Never chase ridiculous high levels, even if the company is making tones of money and everything is looking rosy.
2.) Always stick to point number 1, because next FAD warning or something like is that is just lurking somewhere around the corner to shot that bird down.
3.) When the victim company is in ICU, start grabbing it from attractive support levels !
Interesting support levels to buy AUROPHARMA
Ok here they are - 600, 500 and 350. 600 is the first one but it becomes really attractive trade near 500. So we will be looking to trade it from buy-side in such a way that our cost basis is as close to 500 as possible. Not possible to walk you through the entire trade procedure but you got the gist of it :)
Here are some other pharma trades we have done. ( please check the link )
CIPLA
Dr Reddy
Bullish on Aurobindo PharmaAuro Pharma seems to be starting a healthly uptrend. It's under consolidation now. Going long upon the upper trendline break could be a good idea. The safest entry would be on the break of the topmost trendline.
