The stock of Aurobindo Pharma (₹1,101) has been moving in a narrow range for almost a year between ₹1,350 and ₹1,000. Immediate support levels are at ₹1,042 and ₹979. A close below the latter will change the long-term outlook to negative for the stock.
Immediate resistance levels are at ₹1,158 and ₹1,185. A conclusive close above ₹1,350 will trigger a fresh rally in Aurobindo Pharma that can lift it to fresh heights. But for the short term, we expect the stock to move in a narrow range with upward bias.
F&O pointers: Aurobindo Pharma October futures closed at ₹1,104.20 and November futures at ₹1,109.90 against the spot price of ₹1,101. The premium indicates existence of healthy long positions. Option trading indicates that the stock could move between ₹1,000 and ₹1,300.
Strategy: Consider buying 1,100-call that closed with a premium of ₹21.80 on Friday. As the market lot is 550 shares, this strategy would cost ₹11,990. This would be maximum loss and that would happen if Aurobindo Pharma fails to cross ₹1,100 before the expiry. But profit potentials are high if the stock surges sharply.
Traders can keep the initial stop-loss at ₹17.5; that can be shifted to ₹21 if Aurobindo Pharma opens on positive note, leading to a rise in call option premium. Traders can aim for a target of ₹25-26. We advise traders to strictly follow the stop-loss to minimise loss.
Follow-up: Contrary to our expectations, Adani Ports rose sharply and would have triggered the stop-loss.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading
Published on October 18, 2025
