Buy Aurobindo Pharma for target of Rs 1110: IIFL

MUMBAI: IIFL is of the view that Aurobindo Pharma has broken out from a Symmetrical Triangle pattern. The brokerage expects the stock to hit initial target of Rs 1110.

“On the daily chart, Aurobindo Pharma has broken out from a Symmetrical Triangle pattern. A positive breakout from the pattern indicates upside in the coming sessions. The stock price was consolidating within the triangle in the range from the third week of August 2010.

On Friday, the stock closed above the upper trendline of the symmetrical triangle and well above its short-term moving averages. The daily MACD is in buy mode, whereas the daily RSI has generated a crossover buy signal. We recommend traders to buy the stock above Rs 1068 for an initial target of Rs 1110. It has advised to maintain a stop-loss of Rs 1048 on all the long positions,” the report said.

Note: Trading idea valid for time-period of 1-3 days.