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- Suzlon Energy share price has been under pressure from profit taking and lethargy in India's equities markets. We discuss why the upside will prevail and a break below ₹60 is unlikely.
Suzlon Energy share price has returned to the upside after three straight sessions of losses. The stock was up by 1.2% and traded at ₹ 65.84 in early afternoon trading on Monday, ensuring it safeguards itself from breaching the ₹60 psychological support. That level is a neckline for its double-top pattern and a break below it could have invited the sellers to take control. While its fundamentals remain strong, a lethargic sentiment in India’s equities markets in the last two weeks and pressure from profit taking had taken their toll on Suzlon (NSE: SUZLON).
After years of restructuring, Suzlon has cleaned up its balance sheet quite a bit and escaped the debt dragnet. This, alongside a return to profitability has caught investors’ eyes. Furthermore, it has proven its muscle at executing the contracts it has won amid a growing order book. Its recent order wins in Rajasthan and Gujarat underline its stay on the growth trajectory .
However, after rising by about 15% in the last six month, consolidation has kicked in, with foreign institutional investors adopting a wait-and-see attitude as US-India trade negotiations continue. Strong government support also comes in handy, with PM Narendra Modi’s move to raise NTPC Green’s free spending limit last week signaling a likely continuation of increased investment in renewable energy.
Suzlon Energy Share Price Prediction
Suzlon Energy share price pivot mark is at ₹64.50 and action above that level favours the buyers to be in control. The stock will likely head higher and meet initial resistance at ₹66.00. However, and extended control by the buyers will break above that level and test ₹66.20.
On the other hand, going below ₹64.50 will put the sellers in control. That will likely see the first support established at ₹64.20. Breaking below that level will invalidate the upside narrative. Also, the resulting momentum could push the action lower and test the second support at ₹64.00.
