Glenmark takes a positive breather as USFDA clears Baddi Plant

The sixth largest pharma company by market capitalisation, Glenmark Pharma is said to have received zero observations from USFDA for its Baddi plant. The stock opened flat to negative, but bounced back 2.5 per cent in the first 1.5 hours and is currently trading up by 1 per cent at 12:54 hours. 

The stock has witnessed a green intraday tick after 5 consecutive downbeats. Despite its positive move, Glenmark is the least gainer amongst the pharma companies in the Nifty Pharma index which is outperforming by 2.3 per cent up move. 

USFDA is said to have inspected the Baddi plant which is a formulation facility situated in Himachal Pradesh. The inspection kicked-off from September 17 and has closed it without issuing any observations, said a leading business channel. Glenmark is yet to confirm the same. 

The stock of Glenmark Pharma had given a multiple point downward sloping trendline breakouts at 605 on August 20 after it took 50 and 100 days EMA support near its prior low of 570. The stock surged up to 711.55 levels but witnessed a Doji on September 10 and thereby gave a pullback. Volumes are reasonable, but the oscillators look laid back which is refraining a good bounce back in the stock. Medium-term view is positive.