Technical Analysis: Aurobindo Pharma Ltd. (AUROPHARMA)

Technical Analysis: Aurobindo Pharma Ltd. (AUROPHARMA)

Analyst: Ashish Sharma, B.Com, MBA Finance, NISM Certified
Date: October 9, 2025

1. Executive Summary

The chart for Aurobindo Pharma exhibits a strong and sustained long-term bullish trend, characterized by a series of higher highs and higher lows. After a significant rally from the lows of 2024, the stock is currently in a phase of consolidation or a potential short-term pullback. The overall structure remains bullish, with a critical support zone identified around the ₹1,150 – ₹1,200 level. A decisive break above the recent highs near ₹1,325 is required to signal the next leg of the uptrend.

2. Chart Overview & Price Action

• Current Price: ₹1,113.60 (as of close on the chart date)

• 52-Week High/Low: The chart indicates a high near ₹1,325.65 and a low around ₹900.00 over the visible period.

• Trend: The primary long-term trend is unequivocally BULLISH. The stock has advanced from a low near ₹900 (approx. May 2024) to a high of ₹1,325.65, representing a gain of over 47%.

• Recent Action: Following the peak at ₹1,325.65, the price has corrected and is currently trading near ₹1,113.60. This move appears to be a pullback within the larger uptrend and is testing a key support area.

3. Critical Technical Levels

• Resistance Levels:

  1. Immediate Resistance: ₹1,200 – ₹1,210 (previous support, now turned resistance).

  2. Major Resistance: ₹1,325 – ₹1,330 (the all-time high recorded in 2025). A conclusive break and close above this level could open the door for further upside towards ₹1,400 and beyond.

  3. Psychological Resistance: ₹1,350 and ₹1,400.

• Support Levels:

  1. Immediate & Strong Support: ₹1,146.35 – ₹1,150 (as marked by the “Entry zone” on the chart). This zone has acted as both support and resistance in the past and is critical for the bullish case.

  2. Major Support: ₹1,050 – ₹1,000. A break below the immediate support zone could lead to a deeper correction towards this area.

  3. Long-term Trend Support: The rising trendline drawn from the 2024 lows (not explicitly drawn but implied) would also provide support, currently residing near the ₹1,050 level.

4. Technical Analysis & Interpretation

• Consolidation Phase: The price action since hitting the ₹1,325 high suggests the stock is undergoing a healthy consolidation. This is a typical market behavior after a strong rally, allowing the stock to work off overbought conditions and build a base for the next potential move higher.

• Support Test: The current price is testing the crucial support zone around ₹1,150. The reaction at this level is key. A strong bounce from here would confirm the strength of the underlying uptrend.

• Volume Analysis: While volume data is not explicitly visible, the structure suggests that the up-moves were likely on higher volume compared to the down-moves, which is a characteristic of a healthy bullish trend.

5. Conclusion and Outlook

Bullish, with a near-term cautious stance. The long-term chart structure is overwhelmingly positive. The current decline is viewed as a corrective pullback within a primary bull market.

• Bullish Scenario: A hold above the ₹1,150 support zone, followed by a rebound and a break above ₹1,210, would signal that the correction is over and the next upward wave has begun. The initial target would be a re-test of ₹1,325.

• Bearish Scenario (Risk): A decisive break and close below the ₹1,146 support would indicate weakness and could trigger a deeper correction towards ₹1,050 – ₹1,000. This would invalidate the immediate bullish outlook and suggest a longer period of consolidation is needed.

6. Recommendation

• For Existing Investors: Hold positions with a stop-loss on a closing basis below ₹1,140.

• For New Investors: The current pullback to the ₹1,150 – ₹1,160 zone offers a potential accumulation opportunity for the long term. It is prudent to accumulate in a staggered manner. A strict stop-loss should be maintained below ₹1,140.

• For Traders: Look for bullish reversal patterns (like a bullish engulfing or hammer candle) around the ₹1,150 support for a tactical long trade with a target of ₹1,210 and then ₹1,260.

Disclaimer: This analysis is based solely on the technical chart provided and is for educational purposes only. It does not constitute a recommendation to buy or sell securities. Investors are advised to consult with their financial advisor and consider fundamental factors before making any investment decision.

Analyst: Ashish Sharma