High momentum stock: Aurobindo Pharma Ltd

With the ongoing bullishness, the stock is expected to perform well in the near future. 

The stock of Aurobindo Pharma is extremely bullish today and has surged nearly 2 per cent despite turmoil in the market. Such stocks that are bullish in bad times come under traders’ limelight and attract buying interest.  

The stock has been hitting higher highs in the past three days and gained over 8 per cent during this period. Today, the stock has crossed above its 50-DMA. A number of technical parameters suggest bullishness of the stock. The 14-period daily RSI has entered the bullish territory and taken out its prior swing high. The MACD histogram is rising and is above its prior high, indicating an upside momentum. Interestingly, the on-balance volume (OBV) has shot up in the past three days, which suggests strong buying interest among the market participants. The other momentum oscillators have also given a buy signal after the stock’s recent upmove. The strong uptrend is driven by above-average volume, which is greater than the 10-day and 30-day average volume. This highlights the larger participation in the stock.  

Recently, the stock has outperformed the broader market by a good margin. With the ongoing bullishness, the stock is expected to perform well in the near future. 

Short-term and positional traders can take note of this and plan their trades accordingly.