Shares of Suzlon Energy hit a fresh 52-week high on Tuesday amid a correction in the broader markets. The multibagger stock gained 5% to a fresh high of Rs 84.40 and crossed the market capitalisation of Rs 1.12 lakh crore mark today. With the stock rising for the fifth session and hiiting 52 week high for the fourth straight session, analysts see the multibagger scrip hitting the Rs 100 mark in the short term.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, "The stock has recently broken out from a flag formation, surging nearly 15% over the past three days. On the weekly time frame, the stock is forming higher highs and higher lows. From a technical perspective, the first resistance level will be around Rs 92, and above that a rally toward the psychological mark of Rs 100 could be expected. On the downside, Rs 70 will serve as the initial support zone, with 64, where the 20-day moving average is placed, acting as the major support level."
The multibagger stock clocked a high turnover of Rs 84.40 crore as 213.13 lakh shares changed hands on BSE today.
The stock is trading in a bullish zone above its 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. This also indicates there are more buyers than sellers for the stock in both short and long term.
The renewable energy stock is overbought on charts, indicates its relative strength index (RSI). RSI of the multibagger stock stood at 80.3. A RSI of 70 and above indicates the stock is trading in the overbought zone.
The stock has surged 337% from its 52-week low in the last one year. The multibagger renewable energy stock is currently trading at 14-year high. Suzlon Energy stock slipped to a 52-week low of Rs 19.30 on August 14, 3023.
The multibagger stock has risen 309% in a year and gained 1284% in three years. Earlier, Suzlon Energy stock opened higher at Rs 81.99 today on BSE. Suzlon Energy shares have a beta of 0.8, indicating low volatility in a year.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher said, "The stock has been rallying with a strong uptrend maintained recently moving past the target of Rs 71 zone and with a higher low formation pattern visible on the daily chart, it has once again regained strength with next potential targets of Rs 82 and Rs 98 levels expected in the coming days. With maintaining the near-term stop loss of Rs 71, one can hold on to the stock with much upside potential visible and further gains can be anticipated."
Aditya Agarwal, Head Derivatives & Technical at Sanctum Wealth said, “Overall long-term structure for Suzlon looks positive and stock has the potential to move towards Rs 94/102 levels in next few months. However, from short term perspective stock is in overbought zone and is trading near its immediate resistance zone of Rs 80-82 and we expect some profit booking from those levels. Players who are already holding the stock can continue to hold with trailing stoploss of Rs 64 whereas for fresh entry Rs 70-68 is an ideal levels to add long positions.”
Rahul Ghose, CEO of Hedged.in said, “The Suzlon stock is in momentum which can take it to Rs 84 levels (10%) in the short to medium term. Both the momentum indicators of RSI and Stochastics have not shown any signs of slowing down but are signaling a little overboughtness. This need not mean a correction but can also mean a consolidation of sorts, but the uptrend remains intact. Also, it is important to note here that the stock has also been declaring positive results for the last 13 quarters including March'24 which paves way for the bullishness from a corroboration standpoint. If we see the momentum indicators cooling off while approaching the 84 levels, the next target for the stock would be Rs 89.”
Brokerage Geojit said, “CAGR & ROE are expected to surpass those of the industry peers for FY24-26E. "We anticipate order inflows to be strong in this period, supported by strong government tendering and from commercial and industrial customers. We expect the revenue CAGR of 53 per cent to drive the EPS growth of 66 per cent CAGR, resulting in ROE improvement," said Geojit while assigning a 'buy' rating to the stock.