Suzlon Share Price Analysis: Suzlon has witnessed a second consecutive day of hitting the lower circuit, with shares experiencing a 12% decline following a preceding 13% gain.

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Suzlon share hit the lower circuit again in 2 days.

1. Overview

Shares of Suzlon, a prominent wind turbine manufacturing company, have faced sustained pressure for the third consecutive day. This trend intensified as the stock hit the lower circuit for the second day in a row. Despite a notable 13% surge over six consecutive trading days, Suzlon has experienced a rapid 12% decline in just three days.

2. Recent Stock Movement:

  • Today’s Movement: The stock fell approximately 5% to Rs 37.32, closing at the same level.
  • Recent High: During last week’s rally, Suzlon reached a record high of Rs 44 on November 17, 2011.

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3. Technical Indicators:

Suzlon shares, although witnessing a 12% decline in three days, remain technically robust:

  • Moving Averages:
    • 50-day moving average: Rs 30.83
    • 100-day moving average: Rs 25.38
    • 200-day moving average: Rs 17.47
  • Relative Strength Index (RSI): Currently at 56, falling below the overbought zone (RSI above 70 indicates an overbought situation).

4. Reasons Behind Previous Surge:

Suzlon’s stock had experienced a significant upward trend in the six trading days preceding the decline, attributed to:

  • Inclusion in the Ministry of New and Renewable Energy’s list of approved models and manufacturers for commercial production of S144-3 MW series wind turbines.
  • Inclusion in MSCI’s Global Standard Index, potentially attracting an estimated investment of 20-30 crore dollars.
  • Improved financial position due to rights issue in 2022 and recent Qualified Institutional Placement (QIP), resulting in debt-free status and a cash reserve of approximately Rs 600 crore.

5. Decline Factors:

The recent three-day decline in Suzlon shares is primarily attributed to profit-booking activities and a general downturn in market sentiment.

6. Chart Assessment:

Despite the recent setbacks, Suzlon’s stock appears resilient on the charts, supported by its position above key moving averages and a relatively moderate RSI level.

In summary, Suzlon’s recent market performance, influenced by both positive and negative factors, underscores the inherent volatility in the stock market and the importance of monitoring key technical indicators for informed investment decisions.

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