Shares of Suzlon Energy Ltd surged 4.41 per cent to scale their one-year high level of Rs 45.45 in Friday's trade. At this price, the multibagger stock has rallied 553.02 per cent from its 52-week low of Rs 6.96, a level seen on March 28 last year when it turned into a penny stock.
Bourses BSE and NSE have put the securities of Suzlon under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
On technical setup, support on the counter could be seen at Rs 41.6, followed Rs 40 and Rs 38 levels. On the higher side, a decisive close above Rs 47 is required for a potential upside till Rs 50. That said, two analysts suggested that traders can also consider booking profits.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 40 and resistance at Rs 47. A decisive close above Rs 47 level may trigger a further upside till Rs 50. Expected trading range will be between Rs 36 and Rs 55 for a month."
AR Ramachandran from Tips2trades said, "Suzlon Energy stock price is bearish with next resistance at Rs 47.8. Investors should be booking profits at current levels as daily close below support of Rs 41.6 could lead to Rs 37 in the near term."
DRS Finvest founder Ravi Singh said, "The stock may see Rs 48 level in the near term. A strict stop loss should be kept at Rs 38. Investor can also consider booking profits."
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 75.83. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a negative price-to-equity (P/E) ratio of 387.95 against a price-to-book (P/B) value of 17.
As of September 2023, promoters held 13.29 per cent stake in the company.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
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