Suzlon Energy shares rose 109% from their March low; buy, sell or hold?

Shares of Suzlon Energy have delivered over 100% returns from March lows. The multibagger stock, which closed at Rs 36.32 on March 20 rose to a high of Rs 75.83 on the last trading day of August.  The stock climbed 109% during the period surpassing its gains of 97% in 2024.

Suzlon Energy shares have delivered 193% returns in a year and gained 909% in two years. However, the multibagger has run out of steam falling 5.13% in the last two weeks.

Suzlon Energy shares ended 1.49% lower at Rs 78.83 on Friday. Market cap of the stock stood at Rs 1.03 lakh crore. The stock clocked a turnover of Rs 23.04 crore as 30.23 lakh shares changed hands on BSE in the previous session.

The stock has surged 249.28% from its 52-week low in the last one year. Suzlon Energy stock slipped to a 52-week low of Rs 21.71 on September 13, 2023. Suzlon Energy shares have a beta of 0.8, indicating low volatility in a year.

Om Mehra, Technical Analyst, SAMCO Securities said, “Suzlon Energy is currently trading at Rs  75.84, having surged 98.53% in 2024 so far. The stock remains exceptionally strong, following a breakout above the critical resistance at Rs 50 levels. On the broader monthly chart, the bullish momentum remains intact, although the monthly RSI hovering around 88 signals an overbought condition. A minor correction is anticipated after the recent rally, which could be a healthy pullback in a strong uptrend, offering a favourable opportunity to accumulate. With energy stocks being in focus, Suzlon is expected to follow the same bullish trajectory. The primary trend remains robust, with the stock trading above its 20 DMA. The outlook is positive, suggesting a continued pattern of rises and pauses. We expect the price to reach Rs 100, followed by Rs 115 by year-end, provided the crucial Rs 50 level holds.

Kushal Gandhi, Technical Analyst, StoxBox said, "The price action analysis on the weekly timeframe shows that it has been trading thinly now at 36% above the mean. The relative strength index shows a negative slope from within the overbought zone, suggesting a waning of price momentum. The stock has immediate support at its 20 daily MA currently trailing near 76.20 and a breach below the average line can result in the continuation of profit booking."

Shares of Suzlon Energy stand above their 30 day, 50 day, 100 day, 150 day, 200 day  but lower than the 5 day, 10 day, and 20 day moving averages. 

However, the stock is still short of the overbought zone, signaling more upside to the green energy stock. RSI of the multibagger stock stood at 72.8. A RSI of 70 and above indicates the stock is trading in the overbought zone.

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.