Suzlon Energy shares rise for three straight sessions; how strong is the uptrend?

Shares of renewable energy firm Suzlon Energy Ltd are in an uptrend for the last three sessions. The stock has risen from Rs 19.73 (closing level) on August 17 to Rs 20.89 in the previous session (August 22) on BSE. In the previous session, the Suzlon Energy shares closed 4.92% higher at Rs 20.89 on BSE against Monday’s close of Rs 19.91. The stock also hit an upper circuit of 5% at Rs 20.90 on BSE. Market cap of Suzlon Energy rose to Rs 28,335 crore. Turnover and volumes were high for the Suzlon Energy stock with 648.12 lakh shares of the firm changing hands amounting to a turnover of Rs 134.59 crore on BSE.

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The stock has more than doubled in just three months, delivering multibagger returns for investors of the penny stock. Suzlon Energy stock rose 124.87% in the last three months. The stock touched its yearly high of Rs 21.25 on August 11, 2023 and fell to a 52-week low of Rs 6.60 on October 13, 2022.

In terms of technicals, the relative strength index (RSI) of the stock stands at 60.7, signaling it's trading neither in the overbought nor in the oversold zone. Suzlon Energy shares have a beta of 1.6, indicating very high volatility in a year. Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

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 Here's look at what analysts said on the outlook of the renewable energy stock.

Abhijeet from Tips2trades said, “Suzlon Energy is bearish on the daily charts with strong resistance at Rs 21. Investors should book profits at current levels or hold till daily support of Rs 19.3 is broken on a closing basis. Below 19.3, next support will be at Rs 17."

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock overall has maintained the positive bias hovering near the Rs 18-21 zone witnessing resistance barrier near the Rs 21 zone on twice occasions and would need a decisive breach above that zone for further continuation of the positive trend with next targets expected till Rs 25 and Rs 29 levels. The near-term support is maintained at around Rs 17.50 zone below which the trend can turn weak and head for further slide."

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Osho Krishan, Sr. Analyst - Technical & Derivative Research at Angel One said, “Suzlon has massively soared more than two times in the current financial year on the back of robust volumes. On the technical chart, 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 over-bought 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 17 odd zone on an immediate basis, followed by the sacrosanct support of Rs 14-15. On the flip side, a substantial hurdle could be seen around the Rs 20-24 zone in the comparable period.”

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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.