JB Chemicals underwent pre-approval inspection, stock highly volatile

The maker of pharma formulations, active pharma ingredients and herbal remedies, JB Chemicals & Pharmaceuticals, underwent USFDA pre-approval inspection. The stock was highly volatile during Friday’s session where it opened flat and plunged nearly 3.9 per cent but recovered and surged 1.5 per cent and is now trading down with 1.2 per cent. 

The company had filed ANDA for a capsule. USFDA carried out inspection at the company’s Panoli, Gujarat manufacturing facility in between October 15 to 18 when the stock witnessed consolidation. USFDA issued 4 observations and has asked the company to resolve those in the next 15 days. However, the observations are considered to be minor and would not impact the company’s business. 

The stock had given a multiple point downward sloping trendline breakouts on August 23 at 318 and attempted a rally up to 352 levels where it gave a Shooting star and retreated and retested below the trendline level. The stock fell below its support at 295 followed by 281 where it gave a Hammer. However, the stock more or less consolidated for the whole of October till date. Meanwhile, it formed a kind of reversal Pennant pattern which has a breakdown level at 285. 

Today’s volatile session is supported by huge volumes. Oscillators had bounced back from over-sold zone but are again tilted Southwards. Thereafter 305 followed by 313 would act as resistances, while 286 followed by 281 as supports.