Aurobindo Pharma: Get well soon 🙂

24 июн. 2021 г.

Aurobindo Pharma

Observation

- we see a stupendous rally in stock from 797 to 1063.90 levels in 2 months
- Since May 11, 2021 The stock is in down trend
- 899 is 61.8% retracement level for Aurobindo Pharma
- 880-889 has played a crucial role for the stock acting as resistance and support multiple times

Given the set up

Any price around 920-880 provides excellent risk::reward ratio to go long in the stock

Target: 1166 / 1248

How I arrived at those 2 target - have done the marking in the chart for your understanding & learning purpose

- Blue line drawn from 797 to 1064 is the reference line
- mirrored the reference line at 2 important levels on the channel

Hope you make the most from it.

Stop loss weekly close below 850 (as this is a medium to longer term view, weekly close becomes more relevant)
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F&O Strategy for July series

Consider a Bull Put Spread strategy

Sell 29 July expiry 900 Put option around 17-18

Buy 29 July expiry 850 Put option around 6.5
(This buying is done to reduce the margin requirement and thereby give better ROI if view holds true)

Max profit potential Rs 6825 - Rs 7475/- per lot.
(Yield potential 13.5% approximately)

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Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be