BackSuzlon Energy share price hits 5% lower circuit; time to book profit? Here's what experts say
Suzlon Energy share price hits 5% lower circuit in morning trade as selling pressure continues. Suzlon Energy stock witnesses profit booking after steep gains in recent months.
PremiumSuzlon Energy share price continued witnessing selling pressure for the second consecutive session as it hit its 5 per cent lower circuit of ₹39.28 on BSE in morning trade on Tuesday, November 21. In the previous session, Suzlon Energy share price closed 2.20 per cent lower after a winning streak of the last six consecutive sessions.
Suzlon Energy stock is witnessing profit booking after a steep gain in the last few months. Suzlon Energy share price hit its 52-week low of ₹6.96 on March 28 this year. In about eight months, the stock has surged nearly six times or about 494 per cent.
Suzlon Energy stock hit its 52-week high of ₹44 on November 17 this year.
Suzlon Energy share price gained nearly 29 per cent in November this year after the news of its potential inclusion in AMFI's midcap category during the January reshuffle. Another factor contributing to last week's rally was the anticipation of Suzlon Energy being added to the MSCI Global Standard Index in the upcoming reshuffling on November 15. The renewable energy stock was officially incorporated into the index last week.
Moreover, Suzlon Energy posted a 45 per cent year-on-year (YoY) jump in their net profits to ₹102 crore in Q2FY24. However, the revenue of the company declined marginally to ₹1,417 crore in Q2FY24 from ₹1,430 crore during the same period last year. The numbers of Suzlon Energy remained positive despite an exceptional loss of ₹35 crore during the quarter ending September 2023.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced a significant 32.6 per cent increase, reaching ₹225 crore compared to ₹169.7 crore in the previous year. The EBITDA margin also witnessed a significant increase rising to 15.9 per cent from 11.9 per cent during the same quarter last fiscal.
Also Read: Suzlon Energy Q2 Results: Net profit jumps 45% YoY to ₹102 crore, revenue drops marginally
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Technical experts recommend some profit booking
Technical experts are of the view that the investors should book some profit in the stock at the current juncture.
Gaurav Bissa, VP of InCred Equities observed that Suzlon has witnessed multiple breakouts on lower levels with strong volumes and has recently crossed major swing highs of ₹30.
While the trend remains positive, momentum indicators like RSI are in deeply overbought zones on the weekly charts suggesting a small pullback can be seen.
"The overall structure remains positive and the stock can test the next hurdle of ₹60-62 levels till it stays above ₹30 levels. It is advised to book partial profit at the current levels and hold the balance quantity for higher levels keeping trailing stop loss at ₹30," said Bissa.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers pointed out that for the last two to three months this counter has been making higher highs and higher lows. The RSI is constantly hovering above the 70 level, which is a sign of bullish bias.
"One can trail a stop loss of ₹40 and ride the bullish move if already bought. Fresh longs are not advised as the current price action is way above 200 DEMA," said Patel.
Also Read: Sunteck Realty share price jumps over 5%; Motilal Oswal expects a 41% upside
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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