Suzlon Energy shares jump 4% on securing repeat order; what's next on tech charts: Rs 40 or Rs 30?

Shares of Suzlon Energy Ltd recovered sharply on Thursday after hitting their lower price band. The stock slipped 5 per cent to hit a day low price of Rs 33.83 in early trade. Later, it saw a recovery and gained 4.75 per cent to hit an intraday high of Rs 37.30. It eventually settled 4.27 per cent higher at Rs 37.13. At this price, the multibagger stock has zoomed 246.36 per cent on a year-to-date (YTD) basis.

Today's upward move in the share price came after the renewable energy solutions provider announced that it has secured a repeat order to develop a 193.2 MW wind power project for The KP Group.

"This will be part of Wind-Solar Hybrid and STU's (State Transmission Utility) tariff-based project for increasing Renewable Energy contribution in the state of Gujarat. Suzlon will supply 92 units of their S120 - 2.1 MW wind turbine generators (WTGs) with a 140m Hybrid Lattice Tubular (HLT) tower at Vagra and Vilayat in Bharuch district of Gujarat," the company stated in a BSE filing.

Girish Tanti, Vice-Chairman, Suzlon Group said, "With an extremely conducive policy environment offered by Gujarat, this order from The KP Group is a testament of India Inc's commitment to building a sustainable India. It is heartening to see the private sector step up to the task with such enthusiasm, especially through the C&I segment that will help MSME to become globally competitive by switching to green power."

Suzlon said its turbines feature the time tested Doubly Fed Induction Generator (DFIG) technology that efficiently integrates wind turbines into the utility network to meet the grid requirements.

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, support on the counter could be seen at Rs 33 level. A drop below the said support zone can trigger further weakness. Strong resistance may be found around the Rs 40 zone.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 33 and resistance at Rs 40. Expected trading range will be between Rs 30 and Rs 40 for a month."

AR Ramachandran from Tips2trades said, "Suzlon Energy is bearish on daily charts with strong resistance at Rs 40. A daily close below support of Rs 33 could lead to target of Rs 27.5 in the near term."

DRS Finvest founder Ravi Singh, "The stock has support around Rs 32 level and resistance above the Rs 38 zone."

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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