Zydus Lifesciences in focus after USFDA inspection

Zydus Lifesciences Limited shares are in focus after a USFDA inspection of its Moraiya facility ended with five observations. Support is Rs 1,085 to Rs 1,095. Zydus Lifesciences Limited [

] is in focus after a US Food and Drug Administration inspection of its manufacturing facility in Moraiya, Ahmedabad, ended with five observations. The inspection ran from 5 October to 13 October. Observations are points raised at the end of an inspection, and the company can respond to them. The update gives no detail on their nature or effect on operations. The stock traded at Rs 1,132.50, down 0.17%, below its moving average of Rs 1,152.50. It has ranged since July, and the Rs 1,085 to Rs 1,095 zone held on earlier tests. The RSI reads 46.34, below its average of 52.39, which shows middling momentum. In my view, the stock is moving sideways between support and resistance, and the news adds no clear direction on its own. The Rs 1,085 to Rs 1,095 zone is the strong support, and a fall below it would put lower levels in view. The Rs 1,205 to Rs 1,233 zone is the resistance, and a move above it would bring fresh highs into focus. Neutral stance while price trades between Rs 1,095 and Rs 1,205. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.