Suzlon share price rose on Tuesday as Indian markets returned to business after closing for Bakri Id holiday. SUZLON was up by 1.2 percent in the intraday session, snapping a two-day losing streak to trade at Rs 50.0 to bring its gains in June to 5.1 percent. Suzlon shares have risen substantially this year and are up by 30 percent year to date.
The share price suffered a major setback on June 10 when independent director Marc Desaedeleer resigned, citing issues with the company’s governance standards and transparency. While Suzzlon share price dropped by more than 5 percent on the back of the news, it bounced back fast, as investors also considered Dasaedeleer’s compliments regarding the company’s operational and financial performance. Consequently, the company appointed one of India’s leading law firms, Khaitan & Co, to evaluate its corporate governance practices.
Also central to Suzlon’s share price trajectory is the reelection of Prime Minister Narendra Modi for a third term. That means a continuation of policies favouring investments in renewable energy development, which is good news to the company’s growth prospects. Suzlon has had a good run in 2024, winning multiple projects inside and outside India. The latest of these was for the supply of hardware, installation and commissioning of the 104 MW power project by Ampin Energy.
The momentum on Suzlon share price signals control by the buyers, and the upward movement will likely continue if the price remains above 49.95. The first resistance is likely to be at 50.49, and a break above that mark could provide fuel to rise further and test 51.00. On the other hand, a break below 49.95 will favour the sellers to take control, with the first support likely to be at 49.49. A breach of that mark will invalidate the upside narrative and could power the downside momentum to test 48.94.
This post was last modified on Jun 18, 2024, 09:46 BST 09:46