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    Aurobindo Pharma shares fall 1.78 per cent in Monday's trading session

    Synopsis

    The Relative Strength Index of the stock stood at 29.85 on Monday.

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    Nagaraj Shetti, Technical Research Analyst at HDFC Securities, believes Monday's pattern could be considered as a High Wave, which reflects high volatility in the market at swing highs.
    Shares of Ltd. fell 1.78 per cent to Rs 682.65 in Monday's trade as of 12:24PM (IST) even as the benchmark Nifty ruled at 18133.05, up 18.15 points.

    The scrip had closed at Rs 695.0 in the previous session. The stock quoted a 52-week low of Rs 660.1 and a high of Rs 1063.75. The company quoted a market-cap of Rs 40722.73 crore on the BSE.

    On BSE, 50,154 shares have changed hands on the counter so far. At its prevailing price, the stock traded at 7.65 times its trailing 12-month EPS of Rs 90.87 per share and 2.36 times its book value. The return on equity (ROE) stood at Rs 24.32.

    Key Financials
    For the quarter ended 30-Jun-2021, Aurobindo Pharma Ltd. reported consolidated sales of Rs 5783.29 crore, down 4.26 per cent from the same quarter a year ago. The company reported 1.36 per cent YoY de-growth in net profit at Rs 769.97 crore for the latest quarter.

    Technical indicators
    The relative strength index (RSI) of the stock stood at Monday. The RSI oscillates between zero and 100. Traditionally, it is considered overbought condition when the RSI value is above 70 and oversold when it is below 30.

    Analysts say the RSI indicator should not be seen in isolation, as it may not be sufficient to take a trading call, just the way a fundamental analyst cannot give a "buy" or "sell" recommendation using a single valuation ratio.
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