Suzlon Energy shares showing signs of fatigue, exercise caution, say analysts

Shares of Suzlon Energy Ltd have tested patience of investors in the short term. The multibagger stock has moved just 2% in three months. Trading in a range, the renewable energy stock seems to be running out of steam and trend turning bearish, according to an analyst.

Shitij Gandhi, Senior Technical Analyst, SMC Global Securities said, "After reaching a 52-week high in September 2024, the stock has undergone a significant correction starting in October. On a monthly basis, it fell over 16% in October 2024, followed by a 6% decline in November and nearly a 1% drop in December. The downward trend continued into January and February 2025, with losses of 7% and nearly 14%, respectively. Overall, the stock has lost approx. 30% of its value from October to February.

This month, however, the stock has shown a sharp rebound after finding support at its 100-day exponential moving average on the weekly charts. Despite this recovery, the stock remains sideways on broader charts, as prices can be seen consolidating in defined range.

In the upcoming sessions, the stock is expected to trade in a range of Rs 48-62. A decisive break above or below this range will likely indicate the stock's next direction. Traders should closely monitor price action as sustained movement above key resistance level could signal a continuation of the recovery in prices. Until then, caution is advised."

In the current session, Suzlon Energy stock was trading 1.95% lower at Rs 55.81 on BSE. Market cap of the multibagger stock slipped to Rs 76,172 crore in the current session. The green energy stock saw a turnover of Rs 20.92 crore as 37.06 lakh shares changed hands on BSE today. 

Suzlon Energy shares have a beta of 1.3, indicating very high volatility in a year. 

Suzlon Energy stock is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The multibagger stock hit a 52-week high of Rs 86.04 on September 12, 2024. The firm reported a 91% rise in Q3 net profit and clocked a 96% rise in net profit in Q3 of the current fiscal.  

The multibagger stock has gained 37.20% in the last one year and risen 546% in two years. The stock climbed 519% in three years. 

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities says the stock has been rangebound in the short term and has a bearish outlook on the multibagger.

"Suzlon is stuck in a tight range, repeatedly knocking on the Rs 60–Rs 61 resistance zone but failing to break through a level that has acted as a ceiling for nearly four months. Despite occasional bursts of momentum, the stock is showing signs of fatigue, with the daily RSI flashing mild negative divergence and suggesting bulls are running out of steam.

The trend has tilted bearish, with the stock slipping below its 200-day EMA a key long-term indicator. Currently trading near the crucial Rs 56 mark, Suzlon is at a technical crossroads. This zone is a confluence of support, and any breach below it could open the floodgates for further selling pressure.A breakdown below Rs 54 could trigger sharp downside moves, dragging the stock toward Rs 48–Rs 45 in a flash. Until then, traders may do well to stay cautious and watch from the sidelines. A convincing breakout above Rs 61, however, would flip the script and spark fresh bullish momentum," said Dhameja.