Shares of Suzlon Energy surged more than 9 per cent during the trading session on Wednesday, after snapping the eight session losing streak in the previous session. The wind energy player managed to extend its gains for the second straight session, rebounding close to 18 per cent in the two sessions.
Shares of Suzlon Energy Ltd surged 9.40 per cent on Wednesday to Rs 80.59, commanding a total market capitalization of Rs 1.1 lakh crore market. The stock had settled at Rs 73.67 in the previous trading session, up 4 per cent for the day. after hitting Rs 68.28-level.
The circuit filter for the wind energy service provider was revised to 10 per cent from 5 per cent earlier on Tuesday. The price band revision has taken place after the stock was removed from the Additional Surveillance Measure (ASM) framework.
Recently, Suzlon Energy shares were hit hard amid the sharp sell-off in the broader markets and a warning letter issued by BSE and National Stock Exchange (NSE) earlier this month. The letter highlighted concerns regarding corporate governance practices after the resignation of independent director Marc Desaedeleer.
Nuvama Alternative Research's prediction of Suzlon Energy being classified as a large-cap stock by the Association of Mutual Funds in India (AMFI) starting February 2025. In the recent development, NSE
Nuvama Institutional Equities expects execution to be similar to Q1FY25 (274MW) at 300MW with slightly better realisations per MW and PAT to expand three times on back on improved execution. The brokerage had a 'hold' rating on the stock.
Suzlon Energy is maintaining a narrow range between Rs 86 -73 for three months. Technical indicators suggest further upside, with the RSI positioned at 63, which points towards a healthy trend without being overbought. The Bollinger Bands also show signs of expansion, often indicative of increased volatility and potential for a significant price movement, said Ameya Ranadive CMT CFTe and Senior Technical Analyst at StoxBox.
"The stock witnessed a strong pullback from the Rs 72 support level over the last two days, driven by substantial volumes, further supporting the bullish case. If Suzlon successfully breaks and sustains above the Rs 86 level, a swift rally towards the Rs 96–104 could unfold in the short to medium term. However, a decisive break below ₹71 would negate this bullish view," he said.
Shares of Suzlon Energy have zoomed about 210 per cent from its 52-week low at Rs 26.20 hit on 11 October 2023. The stock has rallied nearly 110 per cent in the year 2024 so far, while it has nearly doubled investors' wealth in last six months period. It has delivered a whopping 3,200 per cent return in the last five years.
Suzlon Energy exhibited a bearish divergence near the Rs 86 level, which indicates a potential reversal in price momentum. Following this divergence, the stock has corrected by approximately 17-18 per cent, pulling back to around Rs 71, said Jigar S Patel, Senior Manager - Technical Research at Anand Rathi Shares and Stock Brokers.
Suzlon is trading within the Ichimoku Cloud, an indicator used to identify potential support and resistance levels. The lower boundary of the cloud, which aligns with the 100-DEMA, is expected to provide strong support in the near term. The RSI on the daily chart is approaching the oversold zone at 30, suggesting that the downward momentum may be weakening, he added.
Given the commitment of India for having 500GW installed RE capacity by FY30, the momentum for bidding with innovative business models and project execution is gradually building up, said JM Financial in a note. JM, which has a buy rating on Suzlon, sees it to be key beneficiaries such projects in their portfolio which have better return are poised for significant gains in future.