Suzlon Energy Share Price Prediction: Stock Signals Reversal As Sellers Losen Grip

Summary:
• Suzlon share price has had a poor run since mid-September, but does that really reflect the company's fundamentals? Is a reversal near?

Suzlon Energy share price stayed on the upside on Thursday, rising marginally by 0.4 percent to end the day’s session at Rs 69.15. The stock built on Wednesday’s gains, which snapped a four-session losing streak, signaling hope of a potential reversal. Nonetheless, Suzlon (NSE: SUZLON) is still in a tight spot, having been on a sharp downtrend since mid-September.

Suzlon share price outlook: What’s in play?

As a result of its struggles in recent weeks, Suzlon share price is down by 16 percent in the last month. In addition, it trades below the 20 and 50-Exponential Moving Average (EMA) levels on the daily chart, which currently stand at Rs 73.68 and Rs 73.69, respectively. That points to a bearish undercurrent, which could limit gains in the near-term.

Nonetheless, Suzlon energy share price is still among the best-performing mega stocks at the NSE, with its year-to-date gains at 79 percent. That minimises the selling pressure, and could provide support for the stock as it seeks to reverse its recent decline. Importantly, the company has a healthy order book with 3.8 GW, enabled by the rise in green energy projects in India. Also, it became debt free in the quarter ending March 2024.

Suzlon previously reversed at the Rs 67.50 level on October 8, and the marginal gains in the last two sessions near that level could be a sign of an impending reversal. However, the stock will need to return to the 20-EMA level to find its rhythm. The first step toward that will be a return above the psychological Rs 70 mark.

Suzlon share price prediction

Suzlon energy share price momentum favours control by the buyers above the pivot mark at 69.75. That will likely meet resistance at 70.63 initially. However, if the upward momentum strengthens, the stock could go above that barrier and test 72.00.

On the downside, moving below 69.75 will put the sellers in control. With that, the downward movement could find the first support at 68.90. But if the sellers extend their control, the price could break below that mark, and invalidate the upside narrative. Meanwhile, the resulting momentum could send the price lower to test 67.90.