Momentum Pick: Will this multibagger’s weekly breakout lead to another leg of rally?
Suzlon Energy shares have rallied 11% since June 4, 2024, after a 3% fall on the election outcome. On Monday, the counter hit a fresh 52-week peak and in the process gave a breakout from the last week high. The stock is a momentum pick, say analysts who see up to 28% upside over the current levels.
On Tuesday, Suzlon Energy stock ended at Rs 53.62, down by Rs 1.09 or 2%.
While there are several technical indicators to assess if the stock is in momentum or not, ETMarkets has picked Suzlon Energy based on its closing above the last week high. This is a weekly breakout scan.
Source: Stock Edge
Last week’s high was Rs 53.05 and the stock ended at Rs 54.70 on Monday. On Tuesday it settled at Rs 53.62, managing to hold above last week’s closing price.
Expert Take
Rohan Shah, Technical Analyst at Religare Broking sees a strong momentum in Suzlon Energy shares in the near term, as he cited formation of progressive higher tops and higher bottoms with volumes supporting the rally.
“Following the price pattern and Fibonacci retracement, we anticipate stock to inch higher towards 60 and 68 levels. While on the other hand 51-51.50 remains the key support zone to watch out for,” Shah said.
The above targets translate into a 13% gain in the base case scenario while a 28% uptick in the bulls case.
Analyst Rahul Ghose, who is CEO of Hedged.in does not see Suzlon Energy shares slowing down over the short-to-medium term, citing the strength of momentum indicators RSI (Relative Strength Index) and stochastics on the weekly
