Buy Waaree Energies stock; sell Suzlon, Reliance Power shares, suggests Arihant Capital

Indian benchmark indices continued to fall on Friday on the back of muted global cues and weak corporate earnings by India Inc, which triggered a sharp sell-off in the broader markets. BSE Sensex tanked 542.47 points, or 0.66 per cent, to settle at 82,184.17, while NSE's Nifty50 plunged 157.80 points, or 0.63 per cent, to close at 25,062.10 for the day.

Select buzzing power stocks including Suzlon Energy, Waaree Energies and Reliance Power are likely to remain under the spotlight of traders for the session today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say about these stocks ahead of Monday's trading session:


Reliance Power | Buy | Target Price: Rs 51-46 | Stop Loss: Rs 61

Reliance Power has closed below its 50-day SMA placed at Rs 61 on the daily charts, indicating emerging weakness in the price trend. It is currently underperforming the benchmark indices, and the momentum indicator RSI is also reflecting bearish sentiment. Considering these technical factors, the downside momentum is likely to persist. Therefore, investors are advised to hold their short positions at the current market price of Rs 56, with a stop loss placed at Rs 61. The expected downside targets are projected in the range of Rs 51 to Rs 46 over the next couple of weeks.

Waaree Energies | Buy | Target Price: Rs 3,290-3,385 | Stop Loss: Rs 3,055

Waaree Energies is forming a higher top–higher bottom structure on the daily charts, indicating a continuation of the prevailing uptrend. It is currently outperforming the benchmark indices, reflecting relative strength. Additionally, the RSI remains positively poised, further reinforcing the bullish momentum. Given these technical indicators, traders are advised to hold their long positions at the current market price (Rs 3,190), with a stop loss placed at Rs 3,055. The stock has the potential to test the target range of Rs 3,290 – Rs 3,385 in the coming weeks to months.

Suzlon Energy | Buy | Target Price: Rs 57-53 | Stop Loss: Rs 66

Suzlon Energy is exhibiting a lower top–lower bottom formation on the daily charts, which is a clear sign of weakness. It is underperforming the benchmark indices, and the RSI remains negatively poised, indicating that the downward momentum is likely to persist. In light of the above technical setup, investors may consider holding short positions at the current market price of Rs 63, with a stop loss placed at Rs 66. The stock has the potential to decline towards the target range of Rs 57 – 53 over the next couple of weeks.