Shares of Suzlon Energy Ltd slipped for the third straight session on Monday, taking year-to-date loss in the new year to over 9%. The current downtrend after a stellar rally in 2024 has left investors guessing if there is more correction left in the multibagger stock. Suzlon Energy stock is trading lower than its 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates its bearish movement in terms of price action in both short and the long term.
At the current level, Suzlon Energy shares are down 31% from the 52-week high of Rs 86.04 reached on September 12, 2024. The renewable energy stock fell to a 52-week low of Rs 35.49 on March 14, 2024.
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, "After delivering a stellar multibagger performance in 2024, rallying from Rs 37 to Rs 84, the stock has entered a corrective phase. It faces significant resistance near its 20-day, 50-day, and 100-day exponential moving averages (EMAs) and has now breached the critical 200-day EMA, signaling further weakness.
The RSI (Relative Strength Index) stands at 38, forming lower highs, which suggests bearish momentum. Additionally, the stock is struggling to maintain higher lows, indicating a lack of support from buyers.
Given the prevailing technical setup, Suzlon Energy remains weak on the charts and is firmly in a no-trade zone. Investors are advised to exercise caution until clear signs of strength or reversal emerge."
Hardik Matalia, Derivative Analyst, Choice Broking said, "Suzlon is currently trading around the Rs 59 level after facing significant selling pressure from its recent highs. The stock has witnessed a throwback from higher levels and is now consolidating near its demand zones. Despite this, Suzlon needs to demonstrate a clear reversal signal before any potential upward movement can be anticipated. Until such a sign emerges, the stock may continue to trade under pressure.
The Relative Strength Index (RSI) is near 37, approaching the oversold territory, suggesting a possible technical bounce if the stock shows any sign of reversal. However, a lack of confirmation keeps the stock vulnerable to further downside pressure. If Suzlon manages to sustain above the Rs 66 level, it could regain positive momentum and resume its upward trajectory. A breakout above this resistance zone with strong volume confirmation could drive the stock toward higher price levels. Until then, the stock’s price action remains under watch for further clarity.
Investors holding Suzlon should maintain a strict stop-loss at Rs 54 on a closing basis to manage downside risk effectively. Those considering fresh buying opportunities should wait for a definitive reversal signal or a sustainable breakout above Rs 66 before entering new positions."
AR Ramachandran, SEBI registered independent analyst said, "Suzlon Energy stock price is bearish on the Daily charts with strong resistance at 62.2. A Daily close below support of 59.5 could lead to target of 53.4 in the near term."
The multibagger stock slipped 4.43% to Rs 59.21 in the previous session against close of Rs 61.96 on Friday. Market cap of the firm slipped to Rs 80,915 crore.
Suzlon Energy stock has climbed 46% in a year and gained 481% in two years. The multibagger stock clocked a turnover of Rs 34.89 crore as 57.83 lakh shares changed hands on BSE in today’s session.
The stock rose to a 52 week high of Rs 86.04 on September 12 this year and fell to their 52-week low of Rs 35.49 on March 14, 2024. Suzlon Energy shares have a beta of 1, indicating average volatility in a year.