Suzlon Energy shares crash 8% from fresh 52-week high; buy, sell or hold?

Shares of renewable energy firm Suzlon Energy Ltd scaled a fresh 52-week high for the fourth consecutive session today. Suzlon Energy stock gained 4.3% to Rs 27, a fresh yearly high on BSE. With today’s rally, Suzlon Energy shares have climbed over 20% in the last four sessions. The stock closed at Rs 22.38 on August 25. Since then, it has gained Rs 4.6 or 20.55% this week.

Later, the stock slipped 8.51% from 52-week high to Rs 24.70 on BSE. At 9:28 am, the Suzlon Energy stock was trading 4.17% lower at Rs 24.81.

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On Monday (August 28, 2023), Suzlon Energy shares rose 4.95% to Rs 23.49, a 52-week high on BSE. They closed at the same level that session. In Tuesday’s session, Suzlon Energy stock gained 4.98% to touch a fresh 52-week high of Rs 24.66 on BSE. The stock was stuck in the upper circuit of 5% for the second straight session. In the third session too, the stock was stuck in the upper circuit of 5% and closed at Rs 25.89 on BSE.

In early deals today, turnover and volumes were high for the Suzlon Energy stock with 209 lakh shares of the firm changing hands amounting to a turnover of Rs 54.65 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 81.6, signaling it's trading in the overbought zone. Suzlon Energy shares have a beta of 1.7, indicating very high volatility in a year. Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

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Here's look at what analysts said on the outlook of the renewable energy stock.

Aditya Gaggar, Director of Progressive Shares, Suzlon Energy said, "Suzlon Energy Ltd has witnessed a spectacular run-up right from Rs 7 till now and at present, the stock is all set to give a major breakout in the higher timeframe in the form of Rounding Bottom formation. Indicators are showing a presence of a strong momentum and in the case of a breakout, the target is Rs 39.35."

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Abhijeet from Tips2trades said, "Suzlon Energy is bullish but also overbought on the daily charts. Investors should book profits at current levels or hold till daily support of Rs 20.7 is broken on a closing basis. Below Rs 20.7, next support will be at Rs 17."

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has witnessed a decent rally in the last 3 months and currently has indicated a breakout above the Rs 21 zone with a strong bullish candle with trend maintained strong and further rise is anticipated for next targets of Rs 27 and Rs 31 respectively. The near-term support zone is lying near Rs 19.50 and with this stop loss maintained, one can expect for further gains in the coming days. The overall trend would turn weak only if a decisive breach below Rs 17.70 is witnessed."

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Market expert Ravi Singh said, "Suzlon Energy shares have traded above their support of Rs 20 level. The RSI is in overbought zone and the short-term moving averages are trading below the prices, supporting the current trend. The daily and weekly chart pattern is suggesting a strong rally ahead for the target of Rs 27 levels in the near term."

Suzlon Energy is a provider of renewable energy solutions. The company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.

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