Suzlon Energy shares gain for seventh straight session; how strong is the uptrend?

Shares of Suzlon Energy Ltd have traded in the green for the last seven sessions. The stock has gained 25% since the October 31 close of Rs 30.58 on BSE. In the current session, Suzlon Energy stock hit a high of Rs 38.45 against the previous close of Rs 37.42 on BSE. The stock fell to a 52-week low of Rs 6.96 on March 28, 2023 and rose to a 52-week high of Rs 39.20 on BSE. Market cap of Suzlon Energy rose to Rs 51,151 crore. Total 18.15 lakh shares of the firm changed hands amounting to a turnover of Rs 6.90 crore on BSE.

Suzlon Energy shares have a beta of 1.7, indicating very high volatility in a year.   In terms of technicals, the relative strength index (RSI) of the stock stands at 77.5, signaling it's trading in the overbought zone. Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

The rally in the stock comes amid news that it could enter AMFI's midcap category in the January rejig.

Another trigger behind the rally is the news that Suzlon Energy is likely to be included in the MSCI Global Standard Index during its upcoming rejig on November 15.  In case, Suzlon does get included in the MSCI Global Standard Index, it might see potential inflows of $193 million, according to Nuvama Alternative & Quantitative Research.

Here’s a look at the outlook of the stock.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Suzlon has massively soared nearly 5x in the current financial year on the back of robust volumes. The stock has witnessed several pivotal breakouts and currently hovering at new 52-week high. 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, a series of support is placed around Rs 34-30 odd zone on an immediate basis, followed by sacrosanct support of Rs 26. On the flip side, the next substantial hurdle could be seen around the Rs 40 zone in the comparable period."

AR Ramachandran from Tips2trades said, "Suzlon Energy is bullish but also overbought on daily charts with next resistance at Rs 40.2. Investors should book profits at current levels or hold till support of Rs 36.45 is broken on a closing basis."

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.

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.

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