Simple play-book to trade pharma stocks in India is to,
1. ) Never chase ridiculous high levels, even if the company is making tones of money and everything is looking rosy.
2.) Always stick to point number 1, because next FAD warning or something like is that is just lurking somewhere around the corner to shot that bird down.
3.) When the victim company is in ICU , start grabbing it from attractive support levels !
Interesting support levels to buy AUROPHARMA
Ok here they are - 600, 500 and 350. 600 is the first one but it becomes really attractive trade near 500. So we will be looking to trade it from buy-side in such a way that our cost basis is as close to 500 as possible. Not possible to walk you through the entire trade procedure but you got the gist of it :)
Here are some other pharma trades we have done. ( please check the link )