25 March 2014

AUROPHARMA - Medium Term View

Week of 2nd June

Inclusion of this stock in MSCI EM index from Monday gave a good spurt to the stock however it was quite volatile through the day and has recorded HUGE delivery volume of nearly 1 Cr shares on NSE. This could be long only funds buying the stock and some big investor exiting it.

As regards EW count my alternate count too suggests its a short candidate and should go for wave 4 correction. If the counts are right it should not move beyond 685 so shorts should have stop just above this level. But I would like to confirm the count and the top before shorting for a couple of days.



Stopped Out.
Obviously wrong count.
Let us play long for some more time.

30th May

The stock has completed its Wave 3 exactly at the target.
Now let us see some decent wave 4 correction.
Minimum correction should be 25% spread over a few quarters.
Stop above 661


12th May

Very much the channel move.
Returns from the top resistance line.


5th May

The channel move continues.
Compare with previous chart for more details.


Weekly



7th Apr

Extends target of Wave 3 Major by extension of  wave 5 of lower degree.

Expect to see 650+ level for completion of Wave 3 Major. The Wave 5 extensions are apparently a channeled/ ED pattern.



Weekly Chart


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AUROBINDO PHARMA has completed this leg of Up-move and is now headed for lower levels.
Target 1 = 446
Target 2 = 386
Stop > 555

Wave Count
Cycle 3
Major 3 completed and heading for Wave 4 (A flat or complex correction.)



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