- Summary:
- Suzlon Energy share price has been on the decline in recent days. However, I think fundamentals mean that a reversal isn't too far off.
Suzlon Energy share price faced a rough run last five week, going down by 3.4 percent in the last five trading sessions. Morgan Stanley downgraded the renewable energy company’s stock from “overweight” to “equal weight” during that period, potentially spooking some investors.
Nonetheless, Suzlon Energy (NSE: Suzlon) is still among the most profitable stocks at the NSE, with its 108 percent profit year-to-date. For context, the Nifty 50 index has only risen by 18.7 percent year-to-date. Furthermore, despite downgrading the stock, Morgan Stanley raised its target from Rs 73 to Rs 88, representing an upside of 10 percent from the current price.
Despite overal impressive returns, Suzlon share price has been downbeat in recent times, signaling bearishness. As of this writing, the stock was trading at Rs 79.78, just below the 20-EMA level on the daily chart. That sets up the 50-EMA mark of Rs 74.49 as the next support level, below which the bearish momentum could stregthen.
A move below the 50-EMA support could potentially tempt some traders to take profit. Nonetheless, the company’s order book is strong and that will help limit the downside. Furthermore, the Indian government’s focus on renewable energy transition provides a favourable sentiment around Suzlon share price.
Suzlon energy share price forecast
Suzlon Energy share price momentum signals control by the sellers. The downside will likely prevail if resistance persists at 80.20, with the first support likely to come at 79.50. However, if the sellers extend their control, they could break below that level and potentially test 79.00.
Conversely, moving abive 80.20 will signal control by the buyers. In that case, the first resistance will likely be at 80.75, but a stronger upward momentum could extend gains to break above that barrier and invalidate the downside narrative. Also, that could see the price move higher to test 81.30.
