Shares of Suzlon Energy Ltd resumed their downward move on Wednesday after a single-day pause. The stock shed 0.43 per cent to settle at Rs 74.18. At this price, it has slipped 12.11 per cent from its 52-week high value of Rs 84.40, a level seen on August 13, 2024. Despite the mentioned drop, the multibagger scrip has rallied 288.76 per cent compared to its 52-week low price of Rs 21.71, hit on September 13 last year.
Analysts largely suggested that the counter is in the consolidation phase after scaling its one-year high level. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the stock is witnessing some consolidation after touching its one-year high level.
"The renewable sector is in a positive territory and things are improving at Suzlon, in terms of profitability. Investors with a high-risk appetite can enter the counter. Those who entered at lower levels can take some profit from the table. With that being said, one can also consider staying invested, given the positivity in the sector," Bathini stated.
Technically, support on the counter could be seen at around the Rs 70 zone. And, a decisive close above the Rs 81-84 range is required for further upside, an analyst said.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon recently experienced profit-taking after a significant rally from Rs 54 to Rs 84. Technical analysis suggests a potential cooling-off period. The Rs 70 zone is likely to serve as immediate support for the stock. 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."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 72.5 and resistance at Rs 75. A decisive close above the Rs 75 level may trigger a further upside to Rs 78. The expected trading range will be between Rs 70 and Rs 78 for the short term."
Sebi-registered research analyst AR Ramachandran said, "Suzlon Energy stock price is slightly bearish on daily charts with strong resistance at Rs 78.7. A daily close below support of Rs 73 could lead to 66 in the near term."
Bourses BSE and NSE have put the securities of Suzlon Energy under the short-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.
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.