Suzlon Energy share price rose to the highest level its October 2022 share split, hitting Rs 53.00 on Friday after rising by 4.5 percent in the intraday session. The share price has been on the upward trajectory since mid-May, and Friday’s bump means that Suzlon is on course to register the sixth consecutive weekly gain. It also brings its YTD gains to 38 percent.
The company also finds itself in calm waters in the face of the renewable energy push by the Indian Government. The recent election win by the BJP party has solidified that policy, and means that renewable energy companies will continue enjoying favourable policies and subsidies for at least the next five years.
India country plans to have 50 percent of its energy come from renewable energy sources by 2030, and that will require the installation of 500 GW of power by that time. Suzlon continues to be at the forefront of this journey and has won several contracts this year. This means its revenue is expected to rise significantly in the coming months, making it an attractive prospect for most investors.
Suzlon isn’t expected to announce a dividend in 2024, but that is unlikely to deter investors from buying into a company whose stock price promises to rise significantly in the near term and long term. Institutions such as mutual funds are among the largest investors in Suzlon, underlining its attractiveness.
Technical analysis
Suzlon share price will likely continue with the upward momentum if the share price stays above the 52.80 pivot mark. That could see the first resistance encountered at 53.10, and extended control by the buyers could breach that mark and test 53.30. Alternatively, a move below 52.60 will favour the sellers to take control, in which case the first support could come at 52.60. A break below that mark will strengthen the downside action and invalidate the upside narrative, Furthermore, it could see the share price move lower to test 52.10.
