Bullish Deep Crab in the Zone 620-625 -where we have support from the previous fall where Wave-W got ended- can be looked for target zone 648-652 which will retrace current fall from 675 to 621 by 61.8%.
We should look for a push from 620-625 zone - See market reaction & then participate.
Previous Analysis- Auropharma Falling like EURUSD
Trade active
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13:05 Hrs 26th April2017
Last Price@625
It turned from 621 just above 620 support as expected. It is Zero Risk trade for us.
Trade closed manually
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14:35 Hrs 26th April2017
Last Price@619
Closed the trade as 620 taken out.
Comments
richdreamz
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Sorry, traders may find my fundamental view as noise but let me pitch in here for a bit of positional view cum fundamentals.
The trading targets are 580 on the downside as provided by traders here but the probable upside is a double over next 2-3 years as per fundamentals. So risk:reward is extremely rewarding for someone with a longer term view. Also, trading does not mean daily/weekly, there might be very long term yearly trends as well to ride.
Now, for that yearly trends around 600 abouts 'could' be reversal. At these prices the stock is priced at 11 times one year forward PE. You can find many junk or high debt commodity stocks trading at 20 times earnings. Some dichotomy here. Extremely poor sentiment towards pharma sector is probably making the pharma companies making bottoms on a longer time frame.
This is my personal view and I have the stock in my portfolio and this is not any advice to buy. Do your due diligence.
Not only auro, look at some front line pharma companies with open mind and risk for some more downside.
Contra view is invited. I will change my view and act on it if a more convincing opinion comes about.
WaveTalks
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@richdreamz, My Positional View n Auropharma started at 895 tops -obviously -time has come close to take contrarian view. I Took contra view when others were buying at top in 850-900 zone.
richdreamz
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@AbhishekHSinghCMT, that was again a view that turned out prophetic. Hindsight is always 20/20 however to make a difference the one with foresight counts which is what your above technicnal view indicated.
When you have time, can you spend some time on my view:
It looks like banks/financial stocks are in the process of making tops while pharma/IT are doing the opposite. How long it would take is something Im unable to pinpoint. But the triggers would be steep INR depreciation or market understanding that USFDA inspections are not death knell but a required process to make Indian pharma world class in coming times etc.
Sector rotation or we too early to predict that.
cajatinnagpal
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Hi, Nice posts Sir.
Aurobindo closed at 605 today breaking its 52 Week low. Whats your opinion sir. Overall the market doesnt seem to be optimistic towards Pharma. However I hold Auro and Sun pharma with medium term objective.
WaveTalks
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@cajatinnagpal, Yes 620 was key level - I mentioned so breaking that level it was bound to fall- which it did. Let me check & I shall get back.
ChintaX
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Hi, can i continue to hold as it went below 620 just for a brief moment..... or since the price breached once the bullish crab gets invalidated?
WaveTalks
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@ChintaX, Yes,It just went for brief moment. Let me comeback with new post. 620 - it should stay below for bearish else it can be a possible jump for upside.
satishsingh0910
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@AbhishekHSinghCMT, are bullish crab patterns applicable to 3/5/10/15 minute charts for a single day
The trading targets are 580 on the downside as provided by traders here but the probable upside is a double over next 2-3 years as per fundamentals. So risk:reward is extremely rewarding for someone with a longer term view. Also, trading does not mean daily/weekly, there might be very long term yearly trends as well to ride.
Now, for that yearly trends around 600 abouts 'could' be reversal. At these prices the stock is priced at 11 times one year forward PE. You can find many junk or high debt commodity stocks trading at 20 times earnings. Some dichotomy here. Extremely poor sentiment towards pharma sector is probably making the pharma companies making bottoms on a longer time frame.
This is my personal view and I have the stock in my portfolio and this is not any advice to buy. Do your due diligence.
Not only auro, look at some front line pharma companies with open mind and risk for some more downside.
Contra view is invited. I will change my view and act on it if a more convincing opinion comes about.