Suzlon Energy shares fall after five sessions; here are the near-term targets

Shares of Suzlon Energy Ltd snapped their five­-session winning run amid weak sentiment in the broader market in early trade today. The stock gained 13.26% since the November 9 close of Rs 37.32 on BSE. The stock has been rallying amid news that it could enter AMFI's midcap category in the January rejig. Another trigger behind the rally last week was the news that Suzlon Energy was likely to be included in the MSCI Global Standard Index during its upcoming rejig on November 15. The renewable energy scrip was included in the index last week.

In the current session, Suzlon Energy stock fell 3.78% to Rs 40.67 against the previous close of Rs 42.27 on BSE. The stock fell to a 52-week low of Rs 6.96 on March 28, 2023 and rose to a 52-week high of Rs 44 on November 17, 2023 on BSE. Market cap of Suzlon Energy slipped to Rs 55, 468.52crore. Total 58.28 lakh shares of Suzlon Energy changed hands amounting to a turnover of Rs 24.53 crore on BSE.

ALSO READ: Tata Power shares rise 45% from March low; here are the short-term targets

Suzlon Energy shares have a beta of 0.6, indicating low volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 85.2, signaling it's trading in the overbought zone. Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

Here’s a look at what analysts said on the outlook of the stock.

Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox said, "Suzlon Energy now needs to sustain over Rs 40 level to embark on the fresh upside. While this could function as a minor suppressor, the underlying trend has built a robust support base. The immediate support comes to Rs 32-mark, as per the technical chart. A breakout over Rs 42 could steer upside in the direction of Rs 50.”

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a splendid move in the last 6 months gaining from around Rs 8 level to touch the peak level of Rs 44 zone where it has witnessed some resistance and has cooled off. Currently with the near term support visible near Rs 38 levels, the overall bias is maintained strong and with series of higher lows formation pattern on the daily chart visible for quite some time, the stock is anticipated to rally decently and has further scope of upward journey in the coming days. Once the consolidation near Rs 38 zone is confirmed, the next near-term target is expected at Rs 48 zone and thereafter with strength sustaining can achieve Rs 52-54 levels. At current levels, we anticipate a some profit booking with Rs 34 level as the major support zone below which the trend can turn little bit weak."

ALSO READ: YES Bank shares trading at 10-month high; right time to book profit?

AR Ramachandran from Tips2trades said, "Suzlon Energy is bullish but also very overbought on daily charts with next resistance at Rs 46.6. Investors should book profits at current levels. Support will be at Rs 40.5."

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon continues to see a robust run even in the extremely overbought scenario. One needs to have a cautious approach, keeping a trail stop losses to Rs 39.50 (bullish gap), while the strong support lies around Rs 34-odd level. On the higher end, Rs 45-46 is likely to be seen as immediate resistance, followed by the Rs 48-50 sub-zone."

Currently, bourses BSE and NSE have put the securities of Suzlon under the long-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.

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.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.