Post nineteenth March, the inventory has been in a broader uptrend and has not been ready to breach its resistance zone previously 5 buying and selling classes.
It can be noteworthy that the inventory on Tuesday closed under its 10 DEMA, nevertheless, was ready to maintain above its 20 DEMA because the indices closed within the pink.
Aurobindo Pharma showcases promising technical indicators, marked by a bullish candle formation on its day by day chart.
“Currently trading at 1163.20, the stock faces a minor resistance at 1177 levels, aligning with its all-time highs. A breakthrough above this barrier could propel it towards the Fib Extension target of 1,200. Supported by a solid support zone near 1,120 levels, alongside its 20-day Exponential Moving Average (EMA), the stock exhibits strength,” mentioned Deven Mehata, fairness analysis analyst with Choice Broking.
Maintaining its place above key moving averages and an RSI of 65.02 underscores its constructive momentum, he added.
Traders could think about initiating positions in Aurobindo Pharma, leveraging the next Bull Call Spread technique proposed by Mehta to capitalize on potential upside actions.
Bull Call Spread
A bull name unfold entails shopping for one name choice with a decrease strike worth and promoting one other name choice with the next strike worth. Both choices can have the identical underlying inventory and expiry date. This technique will make a revenue because the stock price goes up. However, the revenue is capped if the inventory worth exceeds the upper strike worth. Losses are restricted if the inventory worth drops under the decrease strike worth of the bought name choice.
ET CONTRIBUTORS(Prices as of 07.05.24)
Following is the payoff graph for the technique:
ET CONTRIBUTORS(Souce: Choice Broking)
(Disclaimer: Recommendations, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Economic Times)