- Suzlon Energy share price has recently broken above the ₹67 resistance, but does it have what it take to maintain upside traction?
Suzlon Energy share price was largely flat in early afternoon trading session on Wednesday, going at ₹67.17 at the time of writing. The stock broke the ₹67 resistance yesterday, after a spending ten sessions trading sideways, but will need to flip that mark into a support levev to build traction for the upside. The lethargic performance by Suzlon share price reflects the mood in the broader Indian equities markets in recent days. Benchmark indices Nifty 50 Index and Sensex Index are each down by about 0.2% in the last five sessions.
However, a deeper look Suzlon (NSE: SUZLON) reveals that its fundamentals remain strong. Not only has it reported forecast-beating earnings in successive quarters, but it also has a strong order book with 5.6GW of power in the pipeline. This underscores a solid revenue inflow for several months.
Furthermore, Suzlon Energy share price upside is supported by a stable net cash positive position worth about ₹830 crore. This is evidence that the company’s debt reduction campaign has yielded results, leaving room to focus on growth.
On the technical front, the stock’s Money Flow Index (MFI) reading is at 61 on the daily chart, signaling investors confidence despite its recent lull. As things stand, the stock is primed for a return to the upside once the profit taking cycle comes to an end. However, near-term gains will depend on its ability to stay above ₹67.
Suzlon Energy Share Price Prediction
Suzlon Energy share price pivots at ₹66.90 and action above that level favours the buyers to stay in control. The upside momentum will likely meet initial resistance at ₹67.65. However, an extended control by the buyers will clear that barrier and could test ₹68.35 in extension.
Alternatively, going below ₹66.90 will signal control by the sellers. That will likely see the first support established at ₹65.90. The upside narrative will be invalid if the price breaks below that level. Also, that could result in a stronger downward momentum that could test ₹65.05.
