Suzlon Energy shares face resistance near Rs 19 level; can they break above?

Shares of Suzlon Energy Ltd slipped into the red in Thursday's trade after hovering close to Rs 18.54 level, which is their 52-week high. The stock today fell 2.50 per cent to hit a day low of Rs 17.53. Around 2.69 crore shares changed hands today on BSE, which was lower than the two-week average volume of 6.17 crore shares. Turnover on the counter stood at Rs 48.22 crore with a market capitalisation (m-cap) of Rs 21,945.96 crore.

The renewable energy provider has recently secured an order of 47.6 MW wind power project from The KP Group in Gujarat. Last week, Suzlon's Board announced that it has cleared a proposal to raise up to Rs 2,000 crore. The company would explore various financial routes to raise the amount, it said.

On technical charts, the stock is witnessing resistance around Rs 19 level, analysts said. Support on the counter could be seen around Rs 16.65, followed by Rs 15.80, Rs 12 and Rs 10 levels. On the higher side, some suggested that it may climb up to Rs 21 in the near term.

Market expert Ravi Singh said, "Suzlon Energy share price jumped after the company presented strong set of number in Q4 results. It managed its expenses efficiently and operating margins stood at 14 per cent with 500 basis points (bps) increase. The company also reduced net debt by 90 per cent. The stock is looking bullish with a target price of Rs 21 levels in the near term."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a decent rise from Rs 13.30 levels. It has slipped slightly due to profit booking and currently taking support near Rs 16.65 levels. A upward move with initial target of Rs 18.70 is possible. And, if the momentum sustains, it may climb further to hit Rs 20.20."

Santosh Meena, Head of Research at Swastika Investmart, said, "Suzlon has recently shown promising signs as it emerges from a prolonged 15-year bear market. A significant development is the breakout of a long-term downsloping trendline originating from its peak in 2008. Presently, Suzlon is exhibiting an encouraging pattern of higher highs and higher lows, with the formation of an ascending triangle. However, it's important to note that the price range of Rs 19-20 may pose an immediate supply zone, potentially impacting further upward movement."

"In the event of a pullback, it's worth highlighting that the range of Rs 12–10 is expected to act as a robust demand zone, providing substantial support to the stock price," Meena mentioned.

AR Ramachandran from Tips2trades said, "Suzlon Energy looks bullish on the daily charts with next resistance at Rs 19. A daily close below the support of Rs 15.80 could lead to Rs 13.20 in the near term."

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.

Meanwhile, Indian equity benchmarks rose sharply today to hit their all-time high levels, led by gains in banks, financials, metals, technology and realty stocks.

Also read: Hot stocks on July 13, 2023: Federal Bank, TCS, Patanjali Foods, Brightcom Group, others

Also read: Stocks that share market analysts recommended on July 13, 2023: Titan, Reliance Industries, Tata Motors, Bharat Electronics, others

Also watch: Sun Pharma shines bright under Dilip Shanghvi; know how the 'Reluctant Billionaire' staged a turnaround for the pharma giant