Shares of Suzlon Energy stock have surged for the fourth consecutive session, hitting a new 52-week high on Monday. This notable performance comes amidst a broader market correction, underscoring the stock’s strong momentum. Despite the broader market’s mild downturn, Suzlon Energy stock has demonstrated impressive resilience and upward trajectory, reaching new heights and showing signs of overbought conditions according to technical analysis.
Price Targets and Stop Loss for Suzlon Energy Stock
The Suzlon Energy stock’s recent gains have raised questions about future price targets and stop loss levels. Investors are advised to keep a close watch on price targets and establish stop loss levels to manage potential risks effectively. Current technical charts suggest several price targets based on recent performance, while stop loss levels are crucial to mitigate potential losses in case of adverse price movements.
On Monday, Suzlon Energy stock rose 3.5% to a fresh peak of Rs 79.30, up from the previous close of Rs 76.58 on the BSE. By 9:44 am, the stock’s market capitalization had reached Rs 1.07 lakh crore, with the stock trading at Rs 79.20. The turnover for the day was Rs 69.39 crore, with 89.62 lakh shares changing hands on the BSE.
The stock’s performance is currently in a bullish phase, trading above its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages. This indicates strong buying interest in both short and long terms. However, the Relative Strength Index (RSI) suggests that the stock is in an overbought condition, with an RSI reading of 77.3. An RSI above 70 generally indicates that a stock is overbought, which could signal a potential for correction or stabilization in the near future.
Technical Analysis of Suzlon Energy Stock
Suzlon Energy stock has shown significant gains over the past year, surging 312% from its 52-week low of Rs 19.30, recorded on August 14, 2023. It is currently trading at a 14-year high and has increased by 292% over the past year and 1,218% over the past three years. Despite these impressive gains, the stock has opened higher at Rs 77.38 today and has a beta of 0.8, indicating relatively low volatility over the past year.
Technical analysts provide various insights into the stock’s current performance and future prospects. Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, notes that the Suzlon Energy stock has demonstrated a strong uptrend, surpassing the Rs 71 target with a higher low formation on the daily chart. He predicts potential targets of Rs 82 and Rs 98 in the near term, recommending a near-term stop loss of Rs 71.
Om Mehra, Technical Analyst at SAMCO Securities, highlights the stock’s positive momentum, noting that it has broken through the Rs 70 resistance level and continues to rise. He suggests that a short-term correction to Rs 71-72 could be an ideal buying opportunity, supported by strong sector performance. He advises holding the stock as long as it remains above Rs 65.
Aditya Agarwal, Head Derivatives & Technical at Sanctum Wealth, is optimistic about the long-term outlook for Suzlon Energy stock, forecasting potential moves towards Rs 94-102 in the coming months. However, he acknowledges that the stock is currently in an overbought zone and nearing resistance at Rs 80-82, which could lead to profit-taking. For new investors, he recommends considering entry points at Rs 70-68.
Rahul Ghose, CEO of Hedged.in, anticipates that Suzlon Energy stock could reach Rs 84 (a 10% increase) in the short to medium term. While overbought indicators suggest potential consolidation rather than a correction, positive results over the last 13 quarters bolster the bullish outlook. If momentum indicators cool near Rs 84, the next target could be Rs 89.
Jigar S Patel, Manager at Anand Rathi Securities, views the stock’s chart positively but advises caution due to its significant rise above key moving averages. He suggests a potential pullback to average levels with support at Rs 65 and recommends a stop-loss below Rs 61.
Laxmikant Shukla, Technical Research Analyst at YES Securities, maintains a buy rating with a price target of Rs 80. He suggests using recent dips as buying opportunities, with a stop loss at Rs 65, noting bullish trends and stable performance above key moving averages.
Brokerage Geojit expects Suzlon Energy stock’s CAGR and ROE to surpass those of industry peers from FY24-26E. They anticipate strong order inflows driven by government tenders and commercial customers, projecting a revenue CAGR of 53% and EPS growth of 66%, leading to improved ROE. They have assigned a ‘buy’ rating to the stock.
Disclaimer: SMT 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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