SUZLON - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.5

📊 Chart Patterns: SUZLON is trading below its 50 DMA (54.8 ₹) and 200 DMA (57.9 ₹), showing weakness. Support lies near 46 ₹, while resistance is around 55–58 ₹. The broader chart suggests consolidation with bearish undertone after failing to sustain above moving averages.

📈 Moving Averages: Current price (52.6 ₹) is below both 50 DMA and 200 DMA, signaling short-term bearish momentum.

📉 RSI: At 38.6, RSI is near oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: Slightly negative (-1.02), confirming bearish crossover and subdued momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion in the short term.

📊 Volume Trends: Current volume (3,48,67,615) is nearly equal to average weekly volume (3,49,40,908), showing stable participation but no strong buying interest.

🚦 Momentum Signals: Short-term momentum remains weak. A bounce may occur near 50 ₹, but recovery requires crossing 55–58 ₹.

🎯 Entry Zone: 48–50 ₹ (near support).

🎯 Exit Zone: 55–58 ₹ (resistance at 50 & 200 DMA).

📌 Trend Status: The stock is consolidating with bearish bias, not yet reversing into an uptrend.

Positive

• Strong ROCE (36.2%) and ROE (45.6%) indicate excellent capital efficiency.
• Low debt-to-equity ratio (0.01) ensures financial stability.
• PEG ratio of 0.37 suggests attractive valuation relative to growth.
• PAT surged from 346 Cr. to 1,328 Cr. (+644% variation).

Limitation

• Stock trading below both 50 & 200 DMA indicates weak technical strength.
• Dividend yield is 0.00%, offering no income to shareholders.
• Book value (5.37 ₹) is far below current price, suggesting stretched valuations.

Company Negative News

• FII holdings decreased by -0.32%, showing reduced foreign investor confidence.
• DII holdings also declined slightly (-0.03%).

Company Positive News

• Massive quarterly profit growth (+644%) highlights strong operational performance.
• EPS improved to 2.22 ₹, reflecting earnings momentum.

Industry

• Industry P/E at 43.9 is higher than SUZLON’s P/E of 23.8, suggesting undervaluation relative to peers.
• Renewable energy sector remains a growth driver with strong policy support and demand tailwinds.

Conclusion

⚖️ SUZLON is consolidating with bearish bias, trading below key moving averages. Short-term traders may consider entry near 48–50 ₹ with exit around 55–58 ₹. Long-term investors may find value given strong fundamentals, low debt, and sectoral growth, but weak technicals and lack of dividend yield warrant caution.