Suzlon Energy shares snap three-day losing streak; buy, sell or hold?

Shares of Suzlon Energy snapped three days of losing streak today amid high volatility in the broader market. The multibagger stock closed 0.96% higher at Rs 74.50 on Tuesday against the previous close of Rs 73.79 on BSE. The green energy stock had lost 6.58% in the last three sessions.  

Market cap of the firm stood at Rs 1.01 lakh crore on BSE. Suzlon Energy stock climbed 198% in a year and gained 821% in two years. Of late, the multibagger stock has seen some weakness, falling 6% in two weeks. 

The green energy stock clocked a turnover of Rs 22.07 crore as 29.29 lakh shares changed hands on BSE in the previous session.

The stock has surged 243.15% 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.

Jigar S Patel, Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers has advised investors to remain cautious on the Suzlon Energy stock. 

"On the hourly chart, the RSI has been consistently forming lower tops over the last 16 days, signalling weakening momentum and indicating the potential for a further decline in the stock price. As we look ahead, the levels around Rs 73-72 emerge as a key support zone that could provide a strong foundation for the stock. Given this setup, a prudent approach would be to adopt a 'wait and watch' strategy, holding off on any action until Suzlon tests this crucial support zone between Rs 72-73," said  Patel. 

Om Mehra, Technical Analyst, Samco Securities said, "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."

Shares of Suzlon Energy are trading 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. 

The stock's RSI stands at 52.2 signaling its neither in the overbought nor in the oversold zone. A RSI of 70 and above indicates the stock is trading in the overbought zone. A RSI of 30 and below indicates the stock is trading in the oversold 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.