Suzlon‘s share price was back in the red on Friday after it ended Thursday higher after monetising its headquarters to drive growth.

What Happened: Shares of the company have remained flat over the past five sessions. The stock seems to be cooling off after an impressive rally in the past few months. In the past six months, the Suzlon share price has surged over 90%.

What Analysts Think: “Suzlon Energy, after peaking at ₹84, is currently trading in a downward channel on shallow volumes, forming a sluggish pattern on the daily chart,” said Anshul Jain, head of research at Lakshmishree. He added that this technical setup suggests the stock may retrace towards the ₹71-₹69 zone, potentially forming a near-term bottom.

Post-retracement, Suzlon is expected to enter a consolidation phase, establishing a robust base. “This base is anticipated to act as a launchpad, propelling the stock towards the ₹124 level. Investors are advised to monitor this phase closely as it presents a strategic entry point,” Jain added.

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“Suzlon’s stock chart appears promising on a daily scale and is currently near 21 DEMA (Double Exponential Moving Average),” said Jigar S Patel,  senior manager – technical research analyst, Anand Rathi Shares and Stock Brokers. However, he cautioned that the stock is trading significantly above the 50-100-200 moving averages. This suggests the possibility of a reversion to the mean, where the stock could pull back to its average price levels.

“Moving forward, the support zone is identified at 70. This range provides a potential entry point for long positions, with an anticipated upside target of 90. To manage risk, a stop-loss should be placed below 66, based on a daily closing basis,” the analyst added.

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