Suzlon Energy’s share price continued to witness selling pressure for the second consecutive session as it hit its 5 percent lower circuit of ₹39.28 on BSE in morning trade on Tuesday, November 21. In the previous session, Suzlon Energy share price closed 2.20 percent lower after a winning streak of the last six consecutive sessions.
Suzlon Energy shares are witnessing profit booking after steep gain in recent months. Suzlon Energy’s share price hit its 52-week low of ₹6.96 on March 28 this year. In about eight months, the stock has increased almost six times or about 494 percent.
Suzlon Energy stock hit its 52-week high of ₹44 on November 17 this year.
Suzlon Energy’s share price gained nearly 29 percent in November this year following the news of its possible inclusion in AMFI’s mid-tier category during the January reshuffle. Another factor contributing to last week’s rally was the anticipation that Suzlon Energy will be added to the MSCI Global Standard Index in the next reshuffle on November 15. The renewable energy stock was officially incorporated into the index last week.
In addition, Suzlon Energy posted a 45 percent year-on-year (YoY) jump in its net profits to ₹102 crore in Q2FY24. However, the company’s income declined marginally to ₹1,417 crore in Q2FY24 from ₹1,430 crore during the same period last year. Suzlon Energy’s numbers remained positive despite an exceptional loss of ₹35 crore during the quarter ending September 2023.
The earnings before interest, taxes, depreciation and amortization (EBITDA) experienced a significant 32.6 percent increase, reaching ₹225 crore as compared to ₹169.7 crore in the previous year. The EBITDA margin also witnessed a significant increase rising to 15.9 percent from 11.9 percent during the same quarter last fiscal.
Also Read: Suzlon Energy Q2 Results: Net profit jumps 45% YoY to ₹102 crore, revenue is down marginally
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Technical experts recommend some profit reserve
Technical experts believe that the investors should book some profit in the stock at the current node.
Gaurav Bissa, VP of InCred Equities observed that Suzlon witnessed multiple breakouts at lower levels with strong volumes and recently crossed major swing highs of ₹30.
While the trend remains positive, momentum indicators such as RSI are in deeply overbought zones on the weekly charts suggesting that a small pullback may be in sight.
“The overall structure remains positive and the stock may test the next hurdle ₹60-62 levels until it stays on top ₹30 levels. It is advised to reserve partial profit at the current levels and hold the balance amount for higher levels keeping a trailing stop loss at. ₹30,” Bissa said.
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Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers pointed out that over the last two to three months this counter has made higher highs and higher lows. The RSI is constantly hovering above the 70 level, which is a sign of a bullish bias.
“One can trace a stop loss from ₹40 and ride the bullish move if already bought. Fresh longs are not advised as the current price action is above 200 DEMA,” said Patel.
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Updated: 21 Nov 2023, 11:44 IST