buy on dips stock near to resistance levels

1. Fundamental Analysis Aurobindo Pharma is a large Indian pharmaceutical company with a strong presence in generic formulations, APIs and injectable products, with significant exposure to the US and European markets. Q1 FY27 — Strong growth Parameter Q1 FY27 YoY Growth Revenue ₹9,150 Cr +16.3% Operating Profit ₹1,839 Cr +14.7% PBT ₹1,515 Cr +25.6% Net Profit ₹1,032 Cr +25.2% Revenue and net profit both reached strong levels, with Q1 FY27 revenue being the company's highest quarterly revenue. Geographic performance: Europe: +25.6% YoY Growth Markets: +37.7% US: +8.1% API revenue: ₹1,049 Cr The company received 10 final USFDA product approvals during the quarter. 2. Balance Sheet The balance sheet is relatively comfortable. FY26 Debt/Equity: around 0.21x Net Debt/Equity: negative, indicating net cash position FY26 ROCE: around 12.7% FY26 ROE: around 9.9% The company reported a net cash position of about ₹397 crore at the end of Q1 FY27, even after funding the Lannett acquisition and share buyback. 3. Valuation At around ₹1,635–₹1,650, the stock is trading at approximately 26x trailing earnings based on current market data. So, valuation is not extremely cheap, but the market is also pricing in improving earnings growth. One thing to watch is whether the recent acceleration in earnings continues over the next few quarters. 4. Technical Analysis This is where the chart becomes particularly interesting. Current technical data shows: 5 DMA: ₹1,668 20 DMA: ₹1,651 50 DMA: ₹1,611 100 DMA: ₹1,545 200 DMA: ₹1,388 RSI: 48.38 MACD: Positive ADX: 23.05 The important point is that the stock remains above the 50, 100 and 200 DMA, so the medium/long-term structure remains constructive. However, short-term momentum has weakened after the stock tested ₹1,717. Key levels Resistance ₹1,685 ₹1,710–₹1,717 ₹1,730+ Support ₹1,638–₹1,650 ₹1,610–₹1,620 ₹1,590 ₹1,545 These levels are also broadly consistent with current pivot calculations.