Aurobindo Pharma's longer term trend turned down: Deepak Mohoni

Deepak Mohoni, Director, trendwatchindia.com, in a chat with ET Now talks about Aurobindo Pharma and pharma stocks.

What is your view on the kind of fall that we are seeing in stocks particularly in Aurobindo Pharma?

Aurobindo Pharma cracked yesterday. It went to a multi-month low. Its longer term trend turned down, it went below the last intermediate bottom. In adverse market conditions that is the stock that has never really been a defensive. Even in 2008 it went through a pretty sharp drawdown. So it is not a defensive kind of pharma.

Ranbaxy is another one, Glenmark is another one. All these can decline quite heavily with the market. They do not hold out like say a Cipla or a Reddy or many of the others Cadila. These are all fairly defensive. So Aurobindo falls in the vulnerable category of pharma stocks.