Shares of Suzlon Energy Ltd settled at their 5 per cent upper price band of Rs 78.05 on Tuesday, pausing a two-day fall. The stock saw heavy trading volume on BSE as around 2.24 crore shares changed hands today. The figure was way more than the two-week average volume of 61.16 lakh shares. Turnover on the counter came at Rs 174.08 crore, commanding a market capitalisation (m-cap) of Rs 1,06,460.71 crore.
The renewable energy firm recently sold its corporate office, One Earth Property, to OE Business Park Pvt Ltd for Rs 440 crore. However, One Earth Property will be leased back to Suzlon for five years with sub-leasing and licensing rights once the sale is done.
Analysts said this high-beta counter has given an uptrend again after some consolidation. Investors with a high-risk appetite should only consider investing in this stock, one of them mentioned. With that being said, immediate support on the counter could be seen at Rs 70. And, a decisive breach above the Rs 80-84 zone is required for a further upside potential of up to Rs 100 level.
"Suzlon has been in focus for the past six to eight months. The stock has given an uptrend again. If it breaks above Rs 80-82 levels then the counter can rise further. It is expected to touch Rs 100 level in the near term," market expert Raghvendra Singh told Business Today TV.
"Suzlon is a high-beta stock. The stock was in a consolidation phase after hitting a 52-week high of Rs 84. Right now, it is entering into the momentum zone. As the renewable energy sector is in a positive uptrend, one can hold on to the stock with a strict trading stop loss of Rs 70. Investors with a high-risk appetite should only consider trading in this stock. It is not a stock for those with a low-risk appetite as there are many good other stocks available in the same category," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"Suzlon recently experienced some profit-taking after a significant rally from Rs 54 to Rs 84 levels. Analysis suggests a potential cooling-off period. The 74-73 zone is likely to cushion, while the bullish gap around Rs 70, is likely to serve as immediate support for the stock," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
On the upper end, the Rs 81-84 range has proven to be a strong resistance and a decisive breakthrough would only indicate the start of a new rally, Krishan added.
"Support will be at Rs 75 and resistance at Rs 79. A decisive close above Rs 79 level may trigger a further upside towards Rs 83. The expected trading range will be between Rs 75 and Rs 83 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
As of June 2024, promoters held a 13.27 per cent stake in the company, which is slightly lower from 13.29 per cent in the previous quarter.