- Summary:
- Suzlon share price rose by almost 5 percent on Wednesday after the company revealed it had won a 402 MW contract in BSE filing.
Suzlon share price rose by 4.43% on Wednesday, hitting the upper circuit level in the intraday trading session to trade at 46.00 INR. An upper circuit is the maximum price at which a stock is allowed to reach in a single day trading session in a stock market. It is calculated based on the previous day’s closing price. The percentage range varies from stock to stock, and trading is halted once the circuit price is reached. The idea behind this is to protect investors from the risks of extreme volatility in the markets.
What fueled the rally?
The rise by the Suzlon stock price sent it to its highest level since February 20, underlining a strong buying momentum that has kept it on the rise since May 16. The latest uptick came on the back of news that the company had secured contracts from Juniper Green Energy to develop a 402 MW wind energy project. The project will cover the entire cycle from installation to commissioning, operation and maintenance.
The scope of the project will see Suzlon install 134 wind turbine generators, each with a capacity of 3MW at Fatehgarh in Rajasthan. The scale of the project points to the high growth potential in the green energy sector, of which the Indian government has committed billions of rupees’ worth of investment between now and 2030. Following today’s gains, Suzlon share price is up by about 20 percent year-to-date.
Wednesday’s contract announcement underlines Suzlon’s good working relationship with Juniper Green Energy, and it comes on the back of a 72.45 MW wind power project contract for development at Dwarka in Gujarat, India involving the two companies, and deposited with the BSE in early March. Suzlon is set to release its first quarter 2024 results in a week’s time, and the anticipation is likely to keep the share price soaring.
Technical analysis
Suzlon share price pivots at 44.75, and the upside is likely to persist, as the buyers are currently in control. That will likely break the circuit price at 46.00 and potentially move the price further up to 47.50. Alternatively, moving below the pivot price will likely put the sellers in control, with the first support coming at 44.20. A continuation of that control will break the support and invalidate the upside narrative. Furthermore, the resulting momentum could push the price lower to 44.00.
