Aurobindo Pharma Options Radar: Use Bull Call Spread to capture uptrend
Aurobindo Pharma has been in a broad range since November 2023 wherein the stock has taken support near Rs 985 levels a few times while on the upside, it shows a resistance near its all-time high level of Rs 1,177.
Post 19th March, the stock has been in a broader uptrend and has not been able to breach its resistance zone in the past 5 trading sessions.
It is also noteworthy that the stock on Tuesday closed below its 10 DEMA, however, was able to sustain above its 20 DEMA as the indices closed in the red.
Aurobindo Pharma showcases promising technical indicators, marked by a bullish candle formation on its daily chart.
“Currently trading at 1163.20, the stock faces a minor resistance at 1177 levels, aligning with its all-time highs. A breakthrough above this barrier could propel it towards the Fib Extension target of 1,200. Supported by a solid support zone near 1,120 levels, alongside its 20-day Exponential Moving Average (EMA), the stock exhibits strength,” said Deven Mehata, equity research analyst with Choice Broking.
Maintaining its position above key moving averages and an RSI of 65.02 underscores its positive momentum, he added.
Traders may consider initiating positions in Aurobindo Pharma, leveraging the following Bull Call Spread strategy proposed by Mehta to capitalize on potential upside movements.
Bull Call Spread
A bull call spread involves buying one call option with a lower strike price and selling another call option with a higher strike price. Both options will have the same underlying stock
