Aurobindo Pharma Limited has been darling of the investors for the last four to five months. So what does the charts say, the long term chart in furnished above it appears that its in the final stages of the up move its appears to be in the 5th wave of the third wave and post which we can see a healthy correction in the stock. One thing to be noted is that the stock has moved past the 10 year resistance line when it moved above 360 so till its above it we can expect the stock to be in strength. But the volumes during the last two to four weeks of the move have been very very heavy. this is the heaviest volumes of the entire rise which indicates that some informed investors have exited and one thing is sure that the upsides are limited for the stock. It seems that distribution is having in the stock as the volumes have been high at tops which is always bad news for bulls. but what ever may be the case till the price indicates the reversal. I would try to furnish the wave break up of the fifth wave in order to try to identify the probable top.

 

M.Sri Mahidar

Trend is Friend.