Today’s pick is AUROPHARMA [stockquote]AUROPHARMA[/stockquote]. The stock spent half of the year in a channel between Rs. 100 and Rs. 140. It broke out bullishly in August, and saw its 52 week high of Rs. 200 in January. Since then the stock has been moving downwards. In the last three months, the stock has moved +2% vs. +6% of the Nifty’s.

AUROPHARMA technical analysis chart

Oscillator RSI and CMO are closing in towards the over-sold territory. The stock is trading in the lower end of a very compact Bollinger band giving no directional bias. Short-term technical just saw 9×4 bearish cross-over.

The MACD line is closing and the signal line are moving parallel to each other, unable to give any outlook. Also, Long-term and short-term GMMA lines are running close to each other and are not giving out any directional bias.

AUROPHARMA correlation chart

AUROPHARMA’s average correlation with the Nifty is +0.48 which is positive. The scrip will be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

AUROPHARMA volatility chart

AUROPHARMA has a historical volatility in the range of 0.4 to 1.2. The scrip’s volatility is currently in the lower end of the range.

Given these technicals, we suggest a short-term sell. For the long-term we suggest to watch out for a directional expansion of the GMMA lines.

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