Aurobindo Pharma Derivatives Strategy - Covered Call - ICICI Securities

Recommendation

Buy Aurobindo Pharma September future Rs. 873-879 & Sell 920 Call Rs. 29-31 for target of Rs. 951

Stop loss: Rs. 827

Time frame: Till September expiry

Rationale

Most pharma stocks saw decent buying in the first half of the August series where stocks like Aurobindo Pharma made new life-time highs of Rs. 970. Leaders among the pack also saw follow up buying and stayed resilient.

However, as the currency appreciated sharply from 75.5 levels, most pharma stocks saw profit booking in the later part of August series. Aurobindo Pharma also saw some profit booking and moved below Rs. 900.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_DerivativesStrategy_AurobindoPharma_Aug20.pdf

Shares of AUROBINDO PHARMA LTD. was last trading in BSE at Rs.876.2 as compared to the previous close of Rs. 867.55. The total number of shares traded during the day was 135386 in over 3830 trades.

The stock hit an intraday high of Rs. 886.4 and intraday low of 863.4. The net turnover during the day was Rs. 118637609.

Source : Equity Bulls

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