Suzlon Energy shares slipped 6% off 52-week high; Rs 39 price target still likely?

Shares of renewable energy firm Suzlon Energy Ltd snapped four days of gaining streak on Thursday. Suzlon Energy stock fell 6% off its 52-week high to close at Rs 21.49 on BSE. It ended 2.01% lower against the previous close of Rs 21.93. Earlier, in the session, the Suzlon Energy stock zoomed 4.24% to hit a yearly high of Rs 22.86 on BSE. This was the second straight session the stock touched a 52-week high. On Wednesday (August 23, 2023), the Suzlon Energy stock hit a yearly high of Rs 21.93. It fell to a 52-week low of Rs 6.60 on October 13, 2022.

The stock opened higher at Rs 22.70 on Thursday.

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However, market cap of Suzlon Energy fell to Rs 29,149 crore. Turnover and volumes were high for the Suzlon Energy stock with 464.83 lakh shares of the firm changing hands amounting to a turnover of Rs 103.49 crore on BSE.

The stock has more than doubled in just three months, clocking 113% returns for investors of the penny stock.

In terms of technicals, the relative strength index (RSI) of the stock stands at 67.6, signaling it's trading neither in the overbought zone nor in the oversold zone. Suzlon Energy shares have a beta of 1.8, 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 has witnessed a spectacular run-up right from Rs 7 till now. 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."

Abhijeet from Tips2trades said, "Suzlon Energy is bullish but also overbought on the Daily charts with next resistance at Rs 22.5. 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."

Ravi Singh, Vice President and Head of Research, Share India 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 27 levels in 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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