Shares of Suzlon Energy gained over 3% to a fresh 52-week high on Monday amid a mild correction in the broader markets. The multibagger stock, which crossed the market capitalization of Rs 1 lakh crore mark for the first time on Friday, almost touched the Rs 80 mark in early deals today.
Suzlon Energy stock rose 3.5% to a fresh high of Rs 79.30 against the previous close of Rs 76.58 on BSE. At 9:44 am, the market cap of the renewable energy stock stood at Rs 1.07 lakh crore and the stpock was trading at Rs 79.20 level. The multibagger stock clocked a turnover of Rs 69.39 crore after 89.62 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 trading in the overbought zone, indicates its relative strength index (RSI). RSI of the multibagger stock stood at 77.3. A RSI of 70 and above indicates the stock is trading in the overbought zone.
The Suzlon Energy stock rose for the fourth straight session on Monday.
In the previous session too, the stock climbed 5% (hitting its upper circuit) at Rs 76.58 on BSE.
It has surged 312% 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 292% in a year and gained 1,218% in three years. Earlier, Suzlon Energy stock opened higher at Rs 77.38 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."
Om Mehra, Technical Analyst, SAMCO Securities said, "Suzlon Energy is holding strong positive momentum, with its primary trend showing continued strength. On a larger timeframe, the stock has broken the sturdy resistance level of Rs 70 and is steadily mounting higher. The daily RSI remains robust at Rs 77, and the stock is trading comfortably above the 20- and 50-day moving averages. The weekly timeframe also supports this positive outlook. A short-term correction towards Rs 71-72 levels could present an ideal accumulation zone. The energy sector's outperformance provides an additional boost to the stock. As long as the stock remains above Rs 65 levels, the momentum and trend are likely to stay positive."
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.”
Jigar S Patel, manager at Anand Rathi Securities said, "Suzlon's stock chart appears promising, showing positive momentum. However, caution is advised as the stock is trading significantly above all major key moving averages. This suggests a reversion to the mean, where the stock could pull back to its average price levels. Moving forward, the support zone is identified at Rs 65. This range provides a potential entry point for long positions, with an anticipated upside target of Rs 80. To manage risk, a stop-loss should be placed below Rs 61 on a daily closing basis."
Laxmikant Shukla, Technical Research Analyst at YES Securities is bullish on the stock. He has a buy rating on the stock with a price target of Rs 80. One can fix a stop loss of Rs 65.
"Suzlon is now showing signs of revival after experiencing a profit booking over the past two days where prices declined from a peak of Rs 72 to a low of Rs 65. The stock has found stability near its line of parity after two days of straight fall. Additionally, the stock is still trading above all its key moving averages accompanied by the formation of bullish candles indicating a shift from a bearish to a bullish price trend. Looking at these factors, one can utilize this dip as a buying opportunity and expect a pullback move on the upside till Rs 80 with the stop loss of Rs 65 on a closing basis," said Shukla.
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.