Top buzzing stock: AUROPHARMA

The stock of AUROPHARMA has soared over 7% on the initial hours of Monday’s trading session.

Aurobindo Pharma Limited is a midcap pharmaceutical company, engaged in producing oral and injectable generic formulations and APIs. With the market capital of about Rs 38000 crore, it is one of the strong growing company of its sector.

The stock of AUROPHARMA has soared over 7% on the initial hours of Monday’s trading session. With a decent gap-up, the stock continued to gain points and crossed above its 50-DMA and 100-DMa with huge volume. The volume recorded is found to be greater than 10d-ay and 30-day average volume. Moreover, volume has risen for fifth consecutive day, indicating strong trading activity. Since its previous swing low of Rs 584.25, the stock has jumped over 17% in just nine trading sessions. It has also outperformed most of its peers during this period. Along with this, it trades near the breakout level of its falling trendline.

Interestingly, the stock is approaching the neckline of its double bottom pattern. The breakout out level of the pattern stands at Rs 702.50, following which the stock can see a huge upmove of over 20%. Moreover, the technical indicators have showed strong strength in the stock. The 14-period daily RSI has surged above its prior swing high and points northward. The MACD histogram is above the prior high and shows strong upside momentum. Moreover, the OBV indicates a strong strength in the stock from volume’s perspective. Along with this, the Elder Impulse System indicates a fresh buy.

Considering its strong price structure accompanied by above average volume and bullish technical parameters, the stock is expected to test the breakout level soon, following which the levels of Rs 800 and Rs 850, can be seen in short to medium term. Moreover, the stock is also a good candidate for swing trading, Short term traders and positional traders can expect decent gains in coming days as expressed by technical analysis.