Suzlon Energy shares jump 5% on fresh order win; can this upward move sustain?
Suzlon Energy share price: 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.
- Oct 27, 2023,
- Updated Oct 27, 2023 3:18 PM IST
Shares of Suzlon Energy Ltd rose sharply in Friday's trade after the company bagged an order from Juniper Green Energy. The stock jumped 4.54 per cent to hit a day high of Rs 32.90 over its previous close of Rs 31.47. At this price, the scrip was just 3.52 per cent lower than its 52-week high of Rs 34.10, hit on October 23, 2023. That said, the multibagger counter has zoomed 372.70 per cent from its one-year low price of Rs 6.96, a level seen on March 28 this year.
Suzlon said it would install 16 wind turbine generators with a Hybrid Lattice Tubular (HLT) tower of the firm's new product with a rated capacity of 3.15 MW, each. The project is located in Gujarat's Dwarka district.
"This is the repeat order for the company's largest turbine rated 3.15 MW, S144‐140m from the 3 MW series. As part of the agreement, Suzlon will supply the wind turbines (equipment supply) and execute the project including, erection and commissioning. Suzlon will also provide comprehensive operations and maintenance services post‐commissioning," it stated.
On technical setup, support on the counter could be seen between Rs 28 and Rs 24. On the higher side, resistance may be witnessed around Rs 35-39 levels.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon has massively soared nearly 4x on the back of robust volumes. The stock has witnessed several pivotal breakouts and currently hovering at new 52-week highs. The recent rally was vertical in nature, which snubbed in between price-wise corrections. The technical parameters indicate the counter is in the overbought territory and one should not be carried away with the ongoing momentum."
As far as levels are concerned, Krishan said that a series of support is placed around Rs 28-26-odd zone on an immediate basis, followed by sacrosanct support of Rs 24. On the flip side, the next substantial hurdle could be seen around the Rs 35-38 zone in the comparable period, he added.
Aditya Gaggar, Director of Progressive Shares, said, "The stock has witnessed a spectacular run-up. Indicators are showing presence of a strong momentum." Expected near-term target on the counter would be around Rs 39, Gaggar mentioned.
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.
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 68.05. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 299.62 against a price-to-book (P/B) value of 87.42.
The scrip has an analyst target price of Rs 26, Trendlyne data showed, suggesting a potential downside of 19 per cent in a year. It has a one-year beta of 1.58, indicating high volatility on the counter.
(Disclaimer: Business Today 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.)
Also read: Hot stocks on October 27, 2023: Vedanta, Adani Power, Vodafone Idea, RVNL, Swan Energy and more
Also read: Cipla reports 43% rise in PAT at Rs 1,130 crore in Q2; margins at 26%
Shares of Suzlon Energy Ltd rose sharply in Friday's trade after the company bagged an order from Juniper Green Energy. The stock jumped 4.54 per cent to hit a day high of Rs 32.90 over its previous close of Rs 31.47. At this price, the scrip was just 3.52 per cent lower than its 52-week high of Rs 34.10, hit on October 23, 2023. That said, the multibagger counter has zoomed 372.70 per cent from its one-year low price of Rs 6.96, a level seen on March 28 this year.
Suzlon said it would install 16 wind turbine generators with a Hybrid Lattice Tubular (HLT) tower of the firm's new product with a rated capacity of 3.15 MW, each. The project is located in Gujarat's Dwarka district.
"This is the repeat order for the company's largest turbine rated 3.15 MW, S144‐140m from the 3 MW series. As part of the agreement, Suzlon will supply the wind turbines (equipment supply) and execute the project including, erection and commissioning. Suzlon will also provide comprehensive operations and maintenance services post‐commissioning," it stated.
On technical setup, support on the counter could be seen between Rs 28 and Rs 24. On the higher side, resistance may be witnessed around Rs 35-39 levels.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon has massively soared nearly 4x on the back of robust volumes. The stock has witnessed several pivotal breakouts and currently hovering at new 52-week highs. The recent rally was vertical in nature, which snubbed in between price-wise corrections. The technical parameters indicate the counter is in the overbought territory and one should not be carried away with the ongoing momentum."
As far as levels are concerned, Krishan said that a series of support is placed around Rs 28-26-odd zone on an immediate basis, followed by sacrosanct support of Rs 24. On the flip side, the next substantial hurdle could be seen around the Rs 35-38 zone in the comparable period, he added.
Aditya Gaggar, Director of Progressive Shares, said, "The stock has witnessed a spectacular run-up. Indicators are showing presence of a strong momentum." Expected near-term target on the counter would be around Rs 39, Gaggar mentioned.
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.
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 68.05. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 299.62 against a price-to-book (P/B) value of 87.42.
The scrip has an analyst target price of Rs 26, Trendlyne data showed, suggesting a potential downside of 19 per cent in a year. It has a one-year beta of 1.58, indicating high volatility on the counter.
(Disclaimer: Business Today 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.)
Also read: Hot stocks on October 27, 2023: Vedanta, Adani Power, Vodafone Idea, RVNL, Swan Energy and more
Also read: Cipla reports 43% rise in PAT at Rs 1,130 crore in Q2; margins at 26%