Suzlon Energy shares rise 64% in a month; analysts on what is the good level to buy

Shares of Suzlon Energy Ltd resumed their rally in early trade today after falling in the last session. The stock gained 3.81% to Rs 13.89 against the previous close of Rs 13.38 on BSE. Market cap of the firm rose to Rs 16,770 crore. Suzlon Energy shares on Thursday fell 7.08 per cent to close at Rs 13.38. The penny stock has surged 64% in the last one month and gained 245% in three years. During a year, the stock has risen 67.54%.  

In the current session, turnover and volumes were high for the stock with 209.73 lakh shares changing hands amounting to a turnover of Rs 28.63 crore on BSE.  

On June 5, the firm said it has surpassed 20 GW in wind energy installations. The statement took the stock 31% higher from June 5 to June 7 on BSE. On June 7, it hit a 52-week high of Rs 14.59 on BSE.   

In terms of technicals, the relative strength index (RSI) of Suzlon Energy stock stands at 72.4, signaling it's trading in the overbought zone. The stock has a beta of 1.6, indicating very high volatility in a year. Suzlon Energy stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.    

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Commenting on the outlook of the stock, Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One  said, “Suzlon has witnessed a strong spurt in the last couple of trading weeks, wherein it soared over 60 percent in just three weeks. With the recent price movement, the stock has witnessed a strong breakout around Rs 11 odd zone. However, post the stellar vertical rally, the possibility of cool-off should be ruled out, though the sentiments are likely to remain bullish biased. As far as levels are concerned, the breakout zone of Rs 11 odd level is expected to provide a cushion from any short-term blip, followed by the sacrosanct support of 200 SMA around  Rs 9. While on the contrary, till the stock sustains above the breakout zone, it is highly anticipated to continue its upsurge with immediate resistance placed around the Rs 15-16 zone in the comparable period.” 

V.L.A. Ambala, Stock Market Today said, “The stock price was facing resistance at Rs 11.50 range and recently this level got a breakout. Currently, it is trading above Rs 13 mark. Price might take a pullback (retesting) till Rs 11-12.25. Target expectation should be 18/20/23/25/30/33/35/40/44/47/50 (for swing trading) in 2 to 8 months. Strict stop loss should be at Rs 7.30 (don’t hold below this if you are already in this stock).” 

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock has witnessed a decent rise in the past 2-3 weeks gathering momentum with huge volume participation but has resisted near  Rs 14.50 zone with some profit booking seen. One can keep the stop loss near Rs 12.40 levels below which again the bias can weaken and further slide can be expected. As of now, the overall trend is maintained positive as long as Rs 12.40 levels are sustained.” 

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.

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