Suzlon Energy share price returned to the upside on Tuesday, gaining 1.1 percent to trade at Rs 68.65. At that price, Suzlon (NSE: SUZLON) recovered some of the losses incurred on Monday when it lost 4.9 percent of its value, hours after hitting a new record high price of Rs 71.64. The renewable energy giant has been on a scintillating run, and is up by 77 percent year-to-date.
Despite the widespread stock market selloff, Suzlon is well positioned to shrug off the negative sentiment, as its fundamentals are firmly based on multiple multi-billion contracts already in the bag. Furthermore, the Indian government’s prioritization of renewable energy transition provides a stable cladding that will ensure the company’s accounts stay healthy. That said, however, the risk of profit-taking could exert some pressure on Suzlon share price, considering its rally this year.
On the 2-hour chart, Suzlon share price has recently broken below the middle Bollinger Band (Rs 69.01) after a prolonged period above that level. That shows the upside momentum has weakened, and the market is nearing a neutral momentum. Notably, the price is marginally below the psychological mark of Rs 70, and a return above that mark could signal a stronger upward momentum. Also, the Relative Strength Index (RSI) is at 52, which is within the neutral-to-bullish-leaning momentum.
Suzlon share price will stay on the downward trajectory if resistance persists at the 68.70 mark. That could see the establishment of the first support at 67.45, but further control by the sellers could breach that mark and test 66.25. Alternatively, a move above 68.70 could put the buyers in control. The resulting momentum will likely encounter the first resistance at 70.00. However, extended control by the buyers could break above that mark, invalidating the downside narrative and building a stronger upward momentum. That could propel further gains to test 71.55.
This post was last modified on Aug 06, 2024, 09:52 BST 09:52