🔴 Supply Zone Rejection After Rally — Is Aurobindo Pharma Heading for a Short-Term Correction?

📊 Technical + Structural Analysis After a strong upmove, Aurobindo Pharma is now showing signs of exhaustion near a key supply zone: 🌊 Elliott Wave Perspective The recent rally appears to be a 5-wave impulsive structure, indicating completion of a short-term uptrend. Price has now entered a distribution phase, forming a potential Wave A of a corrective structure. The rejection from highs suggests the beginning of an ABC correction, with downside targets in the ₹1320–₹1280 range. 📉 MACD Insight Momentum seems to be flattening after a strong bullish phase. Likely bearish divergence forming, as price made marginal higher highs but momentum failed to confirm. Early signs of momentum slowdown, indicating reduced buying strength. 📍 AVWAP Confluence The highlighted zone (~₹1380–₹1440) acts as a strong AVWAP resistance cluster from recent swing highs. Multiple rejections from this zone confirm institutional supply presence. Immediate support lies near ₹1340, followed by stronger demand around ₹1300–₹1280 (previous breakout + AVWAP support). 🧠 Price Action Context Formation of lower highs inside the supply zone Increasing red candles = distribution behavior No strong bullish follow-through after breakout attempt 📈 Fundamental Snapshot Strong player in global generics and API space Consistent revenue growth, driven by US and emerging markets Stable margins with improving operational efficiency Reasonable valuation compared to peers, but near-term price may cool off after rally