Synopsis: Suzlon Energy shares have shown impressive growth, delivering 259% returns over one year and 856% over two years. Despite a recent dip of 1.58% in the past week, the stock remains in a bullish zone, with potential for further upside.
Suzlon Energy, a leading provider of renewable energy solutions, has seen remarkable gains in its share price over the past two years.
The stock has delivered a staggering 259% return in one year and an impressive 856% return over two years.
However, the recent trend shows that the multibagger’s rally might be slowing down, with the stock falling by 1.58% in the past week.
Despite the recent dip, Suzlon Energy shares continue to trade above their short-term and long-term moving averages, indicating a generally bullish trend.
Currently, the stock's Relative Strength Index (RSI) stands at 72.8, suggesting that it is nearing the overbought zone.
An RSI above 70 typically signals that a stock might be overbought, but Suzlon's position just below this threshold indicates there could still be some upside potential.
On Friday, Suzlon Energy shares closed at Rs. 78.84, up by 1.65%, bringing the market capitalization to Rs. 1.07 lakh crore.
The stock’s performance has been robust, surging 271% from its 52-week low of Rs. 21.26 recorded on August 14, 2023.
With a beta of 0.8, the stock has shown lower volatility over the past year.
Market Insights and Technical Analysis:
Mandar Bhojane, Research Analyst at Choice Broking, suggests that Suzlon Energy is demonstrating a strong bullish trend, with the stock forming higher highs and higher lows consistently.
According to Bhojane, the monthly chart of Suzlon reveals a rounding pattern, which indicates the potential for further upside.
He recommends that investors holding Suzlon shares continue to do so with long-term targets of Rs. 100 and Rs. 140.
For short-term traders, he advises booking profits around Rs. 85 and Rs. 90, with a trailing stop-loss at Rs. 68 to manage risk.
Kushal Gandhi, Technical Analyst at StoxBox, notes that Suzlon Energy is currently trading at a high valuation, being more than 46% away from its mean on the weekly chart.
This situation suggests a heightened likelihood of profit booking in the near term.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, highlights that from a technical perspective, Suzlon Energy's first resistance level is around Rs. 92.
If this level is surpassed, a rally towards the psychological mark of Rs. 100 could be anticipated.
On the downside, Rs. 70 will serve as the initial support zone, with Rs. 64, where the 20-day moving average is positioned, acting as a significant support level.
Aditya Agarwal, Head of Derivatives & Technical at Sanctum Wealth, believes that the long-term outlook for Suzlon remains positive, with potential growth towards Rs. 94 and Rs. 102 in the coming months.
However, in the short term, the stock appears to be in the overbought zone and is nearing its immediate resistance of Rs. 80-82.
He expects some profit booking at these levels and advises current holders to maintain their positions with a trailing stop-loss at Rs. 64. For new entries, he recommends buying between Rs. 70-68.
Suzlon Energy’s Business Profile:
Suzlon Energy specializes in renewable energy solutions, particularly wind turbines.
The company also provides a comprehensive range of solar energy solutions, including solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain management, installation, commissioning, and life cycle asset management.
In conclusion, Suzlon Energy's shares have shown impressive gains over the past year, but recent trends indicate potential slowdowns in the short term.
With various technical indicators and expert analyses pointing towards both opportunities and risks, investors should carefully consider their strategies, whether for short-term gains or long-term investments.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
