- Summary:
- Suzlon share price is currently above the 5, 20, 50, 100 and 200 SMAs, underlining a strong bullish grip of the stock.
Suzlon Energy share price spiked to new 52-week highs of Rs 76.56 on Friday, having risen by 4.9 percent in the intraday session- and hitting its upper circuit as a result. The skyrocketing stock saw the company’s valuation hit a historic Rs 1 lakh crore, signaling its strong appeal in a market recovering from the recent jittery sentiment. Suzlon (NSE: SUZLON) has been one of the best performers at the BSE this year, with its year-to-date gains standing at 98.8 percent. In addition, it has risen by 283 percent in the last 12 months, and its weekly gains stand at 9.5 percent.
These figures mean that the Suzlon Energy share price is above the 5, 10, 20, 50, 100 and 200 day moving averages, underlining the strong bullish momentum. Its latest rally is largely attributed to the company’s board’s approval of the acquisition of 76 percent stake in Renom Energy, a market leader in the operations and maintenance segment of the renewable energy industry. The deal will make Renom Energy a subsidiary of Suzlon and will give it a lead in one of the most important segments of the industry.
Momentum indicators
On the 2-hour chart, the momentum on Suzlon share price indicates a strong control by the buyers. The price is above the 20, 50 and 200 SMA. Also, the 20-SMA is well above the 50 and 200 SMAs. However, the Volume Weighted Moving Average (VWMA) line has recently crossed above the 20-SMA, signaling that the buyers could be losing their grip on the market.
Support and resistance levels
The chart below affirms the upside momentum on Suzlon share price, with the pivot at 76.00. With the buyers in control, the upside momentum will likely encounter the first resistance at 78.00. However, extended control could breach that barrier and test 80.00. Alternatively, a move below 76.00 will signal control by the sellers, with the first support likely to come at 73.20. If the sellers extend their control, they could breach that mark, invalidate the upside narrative and potentially send the share price lower to test 73.35.
