By Suzlon Energy shares witnessed a modest gain on September 20, trading 1.21% higher at ₹81.95 as of 11:12 a.m. This uptick comes in line with the broader market’s positive sentiment, as the Sensex also climbed 1.19%, reaching ₹84,175.41.
During the day, Suzlon stock hit an intraday high of ₹82.8 and a low of ₹81.74, maintaining a steady upward trajectory as investors monitored its performance.
The technical indicators reveal an interesting setup for the stock. Suzlon is currently trading above several key moving averages, including the 10-day, 20-day, 50-day, 100-day, and 300-day Simple Moving Averages (SMA).
It remains below the 5-day SMA, which has created a resistance level at ₹82.46. The stock finds support at its longer-term SMAs, while facing short-term resistance at the 5-day level. The key support and resistance points for the stock, according to classic pivot level analysis, are as follows: resistance at ₹83.3, ₹85.65, and ₹88.3, while support lies at ₹78.3, ₹75.65, and ₹73.3.
Trading volume for Suzlon has been notably lower than usual, with the volume down 68.22% compared to the previous trading session. This could suggest a lack of conviction among traders in either direction.
A positive price movement combined with higher volume indicates a sustainable upward trend, while a negative price movement with high volume may signal further declines. The current low volume combined with the price rise may suggest that the bullish momentum is not as strong as it could be, leaving room for volatility in the near term.
From a broader market perspective, Suzlon’s performance today contrasts with some of its peers. While stocks like Voltas and Thermax saw declines, Bharat Heavy Electricals and AIA Engineering posted gains, reflecting a mixed day for the sector. Suzlon’s ability to hold its ground amid this varied performance demonstrates its resilience in the current market environment.
Suzlon’s bullish outlook is supported by its technical strength, but fundamental analysis adds more weight to the stock’s performance. The company’s return on equity (ROE) stands at an impressive 26.31%, suggesting it is generating solid returns on shareholders’ equity.
The stock’s price-to-earnings (P/E) ratio is currently at 127.03, which indicates that Suzlon shares are trading at a high premium relative to its earnings. This elevated P/E ratio may signal overvaluation, or it could reflect strong investor optimism about the company’s future prospects.
Another important factor to consider is the company’s shareholding structure. As per the latest filings from the June quarter, promoters hold 13.27% of Suzlon, while mutual funds (MFs) have a 2.12% stake, up from 1.14% in the March quarter.
Foreign institutional investors (FIIs) also increased their holdings, now owning 20.63%, up from 18.67% in the previous quarter. The increasing stakes by both MFs and FIIs suggest growing confidence among institutional investors in Suzlon’s long-term potential.
Suzlon has been a key player in the renewable energy sector, particularly in wind energy, and has consistently attracted attention from both retail and institutional investors.
The company’s ability to maintain its market position and attract new investments bodes well for its future. Despite the challenges it has faced in the past, including financial restructuring and operational hurdles, Suzlon’s stock continues to show signs of recovery.
With benchmark indices Nifty and Sensex both posting gains today—up 0.98% and 1.19% respectively—Suzlon’s rise aligns with the broader market sentiment. However, it is important to note that despite today’s gains, the stock still faces resistance at higher levels.
The next few trading sessions could be crucial in determining whether Suzlon can break through its resistance points and continue its upward trend or if it will face downward pressure due to technical resistance and lower trading volumes.
Investors should also keep an eye on broader market trends, such as government policies on renewable energy and any shifts in global energy demand, which could impact Suzlon’s business prospects. For now, the stock remains in a bullish phase, supported by technical indicators and growing institutional confidence, but its lofty valuation and short-term resistance levels suggest that caution may be warranted for those looking to enter or exit positions in the stock.
As of midday, Suzlon is holding steady, but the coming days will reveal whether it can sustain this positive momentum or if external factors will influence its trajectory in the near term.
