Suzlon Energy shares hit 5% upper circuit limit; key technical levels to watch

Shares of Suzlon Energy Ltd rose sharply in fag-end trade on Thursday. The stock jumped 5 per cent to hit its upper price band of Rs 42.94. At this price, the stock traded 6.04 per cent lower from its one-year high price of Rs 45.70, a level seen earlier this week on Monday (January 15). Despite the mentioned fall, the multibagger counter has rallied 516.95 per cent from its 52-week low price of Rs 6.96, hit on March 28 last year when it turned into a penny stock.

The stock saw heavy trading volume today as 2.17 crore shares changed hands on BSE. The figure was higher than the two-week average volume of 1.52 crore shares. Turnover on the counter stood at Rs 91.30 crore, commanding a market capitalisation of Rs 58,303.72 crore.

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.

On technical setup, the counter traded lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150- and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 59.73. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 364.51 against a price-to-book (P/B) value of 15.98.

"Support will be at Rs 40 and resistance at Rs 47. A decisive close above Rs 47 level may trigger a further upside till Rs 50," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Suzlon Energy's stock price may see resistance at Rs 47.8. Investors should be booking profits at current levels as daily close below support of Rs 41.6 could lead to Rs 37 in the near term," said AR Ramachandran from Tips2trades.

"The stock may see Rs 48 level in the near term. A strict stop loss should be kept at Rs 38. Investor can also consider booking profits," said DRS Finvest founder Ravi Singh.

As of September 2023, promoters held 13.29 per cent stake in the company.

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

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