Weekly stock picks by Religare Broking: Buy Aurobindo Pharma, Marico

The chart pattern and positioning of oscillators are pointing towards a sharp up move in Aurobindo Pharma in the near future

Buy Aurobindo Pharma Limited

Last Close: Rs 879.25

Initiation range: Rs 875-880

Target: Rs 930

Stop loss: Rs 845
 

Aurobindo Pharma has witnessed a fresh breakout from a consolidation range on November 24, with a noticeable rise in the volume. The chart pattern and positioning of oscillators are pointing towards a sharp up move in the near future. We advise creating fresh longs in the given range.

Buy Dr. Reddy's Laboratories Limited

Last Close: Rs 4,915.50

Initiation range: Rs 4,910-4,920

Target: Rs 5,200

Stop loss: Rs 4,770

The pharma pack looks set for a rebound after three months of consolidation. Among the stocks, Dr. Reddy’s has also witnessed decent retracement from its record high and formed a base above the support zone of the medium-term moving average (100 EMA) on the daily chart. Indications are in the favor of a swift rebound soon. We thus advise creating fresh longs within the mentioned zone.

Buy Marico Limited

Last Close: Rs 378.05

Initiation range: Rs 376-379

Target:Rs 405

Stop loss: Rs 365

We’re seeing fresh traction in the defensive pack but participation is restricted to a select few so far. Marico has been consolidating in a range of 340-380 zone for the last two months and trading on the verge of a breakout now. Traders shouldn’t miss this opportunity and create fresh longs in the given range.

Disclaimer: Ajit Mishra is VP - Research at Religare Broking

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