Zydus Lifesciences falls 0.7% after USFDA plant inspection

Zydus Lifesciences fell 0.69% after a USFDA inspection at Moraiya ended with five observations, with support at Rs 1,085 and Rs 1,050. Zydus Lifesciences Limited [

] closed 0.69% lower at Rs 1,124.70 on 14 October, a day after the USFDA inspection of its Moraiya plant in Ahmedabad ended with five observations. The inspection ran from 5 to 13 October. The company did not disclose what the observations were and said it will work with the USFDA to address them quickly. Observations are a written list of issues to fix and carry no penalty on their own. The market now waits for the severity of the findings and the company’s response, since the plant supplies the US market. The stock is range-bound. It has traded between about Rs 1,085 and Rs 1,232 since July. Immediate support is Rs 1,085, with key support at Rs 1,050. Resistance is Rs 1,232. RSI is 44.59, below its average of 51.44, so momentum is soft. A close below Rs 1,085 would put Rs 1,050 in play, and a close below Rs 1,050 would open a deeper fall. A close above Rs 1,232 would end the range to the upside. Disclosure: I do not hold any position in this stock. This is not a recommendation to buy or sell. Investments in securities markets are subject to market risks. Read all related documents carefully before investing.