Aurobindo Pharma Limited (AUROPHARMA) Stock - Complete Technical Analysis - Dec 13, 2024

Aurobindo Pharma Stock Analysis: Key Support & Resistance Levels You Need to Know

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Aurobindo Pharma Limited (AUROPHARMA) is currently trading at 1,208, representing a significant 24.1% drop from its 52-week high of 1,592, while still trading 26.1% above the 52-week low of 958.5. This indicates a cautious trend in the stock, which has been exhibiting some weakness recently. The stock's P/E ratio stands at 34.2, indicating a relatively expensive valuation compared to its earnings. The book value of 335 suggests there is some intrinsic value in the stock.

The technical indicators show mixed signals. The RSI of 28.4 suggests that the stock is oversold and could see a reversal in the short term. The Stochastic indicator at 18.94 supports this view, hinting that a potential uptrend could be on the horizon. However, the momentum indicator is negative, and the Awesome Oscillator is also showing a bearish trend, indicating that the stock may continue to face short-term pressure.

Moving averages show that the stock is trading below its short-term moving averages, indicating some immediate resistance near 1,232-1,254.61, where the 10-day and 20-day EMAs lie. These levels will be crucial for the stock to surpass in order to confirm a reversal. Despite the short-term struggles, the stock is still above its longer-term moving averages like the 50-day and 100-day EMAs, which suggests that the overall trend remains bullish.

A bullish reversal pattern, the Hammer candlestick, has formed recently, signaling a possible turnaround if the stock finds support at lower levels. The stock has established support at 1,173 and could see a bounce from this level. Should the stock successfully break through resistance levels, the next target would likely be around 1,300, with further resistance at higher levels.

The stock's ATR indicates that there is high volatility in the market, suggesting that traders should remain alert to sudden price fluctuations. Overall, the stock's near-term outlook is uncertain, and traders should look for confirmation of a breakout or reversal before making significant moves. Investors may consider buying at support levels with stop-loss orders in place to manage risk effectively.