Suzlon Energy: Stock hits 5% upper circuit after securing fresh orders

Suzlon Energy Ltd's shares surged to their 5% upper price band of Rs 46.23 during Wednesday’s trading session, following the announcement of new order wins for wind energy projects. The renewable energy solutions provider secured a significant order to develop 402 MW wind energy projects for Juniper Green Energy.

As part of this order, Suzlon will install 134 wind turbine generators (WTGs), each with a rated capacity of 3 MW. These turbines, from Suzlon's S144‐140m series, will be installed in Fatehgarh, Rajasthan. The project aims to supply electricity to nearly 3.31 lakh households and is expected to reduce CO2 emissions by approximately 13.07 lakh tonnes annually.

Girish Tanti, Vice Chairman of Suzlon Group, expressed delight over the continued partnership with Juniper Green Energy, emphasizing that this order would help expand Suzlon’s presence in Rajasthan. Suzlon will handle the supply, foundation, erection, commissioning, and comprehensive operations and maintenance of the wind turbines post-commissioning.

The announcement led to a trading frenzy, with 38.57 lakh shares changing hands, surpassing the two-week average volume of 21.07 lakh shares. The turnover reached Rs 17.48 crore, and Suzlon's market capitalization stood at Rs 62,890.65 crore. Notably, there were 8,46,123 lakh buy orders with no sell orders.

Both BSE and NSE have placed Suzlon's securities under the long-term ASM (Additional Surveillance Measure) framework due to high volatility in its share prices. Despite this, the stock has shown impressive performance, surging 20% year-to-date and nearly 400% over the past year.

Technical indicators support a bullish outlook for Suzlon Energy. The stock's RSI (Relative Strength Index) is at 64, indicating it is not yet overbought, while the MACD (Moving Average Convergence Divergence) is at 0.1, suggesting a bullish trend. The stock is trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart, commented on Suzlon’s technical structure, noting its breakout from long consolidation with strong volume. He identified Rs 48 as an immediate resistance level and projected potential further gains towards Rs 50. On the downside, Rs 40 serves as major support, with Rs 36-38 as the next critical demand zone.