- Summary:
- Suzlon energy share price rose to new YTD highs on Monday, and its strong order book means there could be more headroom in the near term.
Suzlon energy share price hit new 52-week highs on Monday, gaining 4.9 percent in the intraday session to Rs 64.98. The stock is on an upbeat momentum and looks to build on last week’s 13.4 percent gain, fueled by a forecast-beating earnings report. The renewable energy company reported earnings per share of Rs 0.22, from Rs 0.08 the previous quarter, on Rs 302 crore in net profit.
The company’s medium-term outlook is positive, supported by a strong order book, which saw it secure 3,817 MW worth of contracts in the last quarter. This is likely to provide fuel for potential continuation of the upside by its share price.
Momentum indicators
The momentum on the Suzlon energy share price signals strong control by the buyers. The price is currently above the upper band on the Bollinger Bands indicator. Furthermore, the Relative Strength Index (RSI) is at 82, adding support for the upside. That said, the momentum also indicates that the stock is overbought, which could set the stage for a reversal in the coming days.
Also, the 20-SMA is above the 50-SMA on the 4-hour chart, lending support for the upside. Also, the Moving Average Convergence Divergence (MACD) is above the signal line, which supports continuation of control by the buyers. If that momentum continues, the Suzlon Energy share price could go on to touch new 52-week highs.
Near-term resistance and support levels
Suzlon share price will likely stay on the upward trajectory if it stays above the Rs 63.63 pivot mark. However, they will likely meet resistance at Rs 65.00, and a move past that mark could build the momentum to head higher and test Rs 66.00. Alternatively, a move below Rs 63.63 will favour the sellers to take control, with the first support likely to come at Rs 62.58. Extended control by the bears will break that mark and invalidate the upside narrative. Also, it could result in further downside to test Rs 61.46.
