Suzlon Energy shares jump 10% in 2 days; analysts see more upside potential in this multibagger

Shares of Suzlon Energy Ltd extended their gains for the second straight session in Wednesday's trade. The stock jumped 5 per cent to hit its upper circuit level of Rs 81.95. At this price, it has climbed 10.24 per cent in just two trading days. On a year-to-date (YTD) basis, the multibagger scrip has rallied 112.97 per cent.

The counter saw heavy trading volume on BSE as around 1.25 crore shares were last seen changing hands today. The figure exceeded the two-week average volume of 77.93 lakh shares. Turnover on the counter came at Rs 101.46 crore, commanding a market capitalisation (m-cap) of Rs 1,11,780.33 crore.

A few analysts suggested that the stock can continue its upward move in the near term. With that being said, one of them mentioned that investors with a high-risk appetite should only consider investing in this stock. On technical setup, support on the counter could be seen at Rs 78, followed by Rs 70 level. And, a decisive breach above the Rs 81-84 zone is required for a further upside potential of up to Rs 100.

"If we see the last two-week price action, a bullish flag pattern has been formed in the consolidation phase. The ongoing upward momentum can continue. The stock can hit an upside target of Rs 100 in the near term with a stop loss of Rs 78," Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, told Business Today TV.

"Suzlon has been in focus for the past six to eight months. If the stock breaks above Rs 82 level then the counter can rise further. It is expected to touch Rs 100 level in the near term," said market expert Raghvendra Singh.

"Suzlon is a high-beta stock. It was in a consolidation phase after hitting a 52-week high of Rs 84. Right now, it is in the momentum zone. As the renewable energy sector is in a positive uptrend, one can hold on to the stock with a strict trading stop loss of Rs 70. Investors with a high-risk appetite should only consider trading in this stock. It is not a stock for those with a low-risk appetite as there are many good other stocks available in the same category," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Suzlon recently experienced some profit-taking after a significant rally from Rs 54 to Rs 84 levels. Analysis suggests a potential cooling-off period. The 74-73 zone is likely to cushion, while the bullish gap around Rs 70, is likely to serve as immediate support for the stock," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

On the upper end, the Rs 81-84 range has proven to be a strong resistance and a decisive breakthrough would only indicate the start of a new rally, Krishan added.

"Support will be at Rs 75 and resistance at Rs 79. A decisive close above Rs 79 level may trigger a further upside towards Rs 83. The expected trading range will be between Rs 75 and Rs 83 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

As of June 2024, promoters held a 13.27 per cent stake in the company, which is slightly lower from 13.29 per cent in the previous quarter.