At 1:45 pm today Aurobindo Pharma (AUROPHARMA) is trading at 641.00, up a solid Rs 22.40, on news that the USFDA had completed an inspection of its key Unit 1 and made no observations.
Technically, on the daily chart, the scrip has shown a classic breakout from an inverted H&S shoulder pattern, which usually signifies a reversal of a downtrend.In the chart above, the pattern is marked out by the labels Neckline, Left Shoulder (LS), Head and Right Shoulder (RS). The breakout is highlighted in the green rectangle.
Adding to the bullish picture is the Golden Cross of the 10-day EMA above the 50-day EMA, an indication that positive momentum is building in the stock.
The scrip should move quickly to test 656, a resistance represented by the 200-day EMA.
Regardless of the global and local narratives, India's BankNifty Index may have turned.
In the hourly chart below see the bullish breakout from an inverted head-and-shoulders pattern, as well as the penetration of the 200 hour EMA.
Also note the positive change in momentum signalled by the Golden Crosses of the 10 and 50 hour EMAs, as well as that of the 50 and 200 hour EMAs.
While the media stories are full of Trump (trade wars), Trump (Syria) and Trump (White House sackings), as well as the scandals in Indian public sector banks, India's premier banking index may have quietly staged a turnaround.
As they say, forget about stories or narratives, but watch what the chart is doing.
In the chart above of India's Nifty 50 Index, price (blue line) has pushed above all of the following lines today:
Be on guard for signs of continuing upward momentum tomorrow - in particular a penetration of the 21 day SMA (pink) line.
India has over 20 percent of the kids born in the world. And they move around a lot.