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Suzlon Energy Shares Rally Continues On Positive Renewable Energy Sentiment

Renewable energy company Suzlon Energy shares continued to climb Wednesday standing at Rs43.20 after gaining 1.65% as of 05.55 am UTC . The company’s allure for investors in 2024 is based on the Indian government’s ambitious targets for renewable energy transition.

In an election year characterized by popularity contests, the government is keen to pass the message that it is capable of seeing the transition to sustainable clean energy sources as a way of tackling India’s burgeoning energy needs. This could see aggressive investments toward the realization of 500 GW of energy from renewables target by 2030. That will constitute about 50% of the country’s energy needs by that time.  India’s current installed capacity for renewables stands at 180 GW.

Increased budgetary support for renewables will come to light starting April 1st, and Suzlon is certainly positioned to draw a substantial chunk of the money. As per the new norms coming in force, energy licensees will be required by State Electricity Regulatory Commissions (SERCs) to ensure that a certain percentage of the energy they distribute comes from renewable energy.

Suzlon Energy has a broad market base for renewable energy, with specialty in the manufacture of wind turbines and solar energy equipment. Furthermore, the company offers services in the entire value chain, right from land acquisition to installation and life cycle management.

The company also stands on a solid financial ground, having realized a revenue growth of 7.17% or Rs 15.53 billion in its last quarterly report in December 2023. Also, its net income grew by 159.1% to Rs 2.0 billion. The Suzlon Energy share price has been on the uptrend since March 21st and is on a consecutive four-day gaining streak as of this writing.

Technical analysis

The momentum on SUZLON shares are on the upward momentum, courtesy of control by the buyers, as shown by the RSI indicator. However, the buyers need to ensure the price stays above 41.90 to sustain the upside. That will enable them to go past the resistance at 43.50, and potentially test 45.40 in extension. However, a move below 41.90 will hand over control to the sellers, with support coming at 40.90. Furthermore, a continuation of control by the sellers at that point could break the support and test 39.80 in extension.