The shares of the company strongly rallied this month as rising temperatures spurred hopes for heightened power demand in the upcoming summer months. JM Financial called the renewable energy player an “unintended beneficiary” of the war between Iran and the US.
After hitting a 52-week low of Rs 38.19 apiece early in March, the stock rallied around 41% to hit a high of Rs 53.74 apiece on Friday.
At the current levels, the stock is still down more than 30% from its 52-week high of Rs 74.30 apiece hit in March last year.
Technical levels to watch out for
Suzlon Energy shares have staged a sharp pullback of nearly 35% from their March 30 low of Rs 39, signalling a strong resurgence in momentum, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. The stock is now trading above key short and long-term moving averages and recently reclaimed its 200-day EMA for the first time since November 6, 2025, indicating improving trend strength, he added.
However, with the RSI at 76, it has entered overbought territory, raising the possibility of near-term profit booking, the analyst cautioned. “Immediate support is seen at 48–47.5, while resistance stands at 53.5–54. A healthy correction after the sharp pullback would offer a better entry than chasing the rally,” Shah said.
Harshal Dasani, Business Head at INVasset PMS, also said that the stock’s technical setup has improved meaningfully in recent sessions, but the chart still does not justify an outright aggressive bullish stance. “The stock has seen a sharp rebound from its recent lows and is now trading above key short- and medium-term moving averages, which indicates that near-term momentum has turned favourable. That said, the recovery needs to be viewed in context. The stock remains well below its earlier peak, which means the broader structure is still in a repair phase rather than a fully established long-term uptrend. Momentum indicators have also moved into elevated territory, suggesting that the easy part of the rebound may already be behind us and that the stock could face intermittent profit-taking,” he said.
The more balanced technical view is that Suzlon is showing strength, but it is also entering a zone where risk-reward is less comfortable for fresh short-term entries, Dasani explained. He added that the strong volumes seen by the stock suggest that participation remains healthy and the recent uptrend is not purely speculative, but that alone does not rule out consolidation.
“In such setups, the market typically looks for either a pause, a sideways base, or a mild correction before attempting the next leg higher. So the stock is not weak, but neither is it a straightforward chase. It appears better suited for a buy-on-dips approach, while a decisive break below near-term support levels would weaken the constructive view,” he said.
Peak power demand ahead?
In a recent report, JM Financial noted that peak power demand during hot and humid evenings is similar to solar hour demand in an El Niño year, and there is more stress on supply at night when 80 GW of solar generation is not available. “When peak demand rises during non-solar hours, variable generation from gas, hydro and partially flexible coal substitutes for the loss of solar generation. But due to the Middle East crisis, gas-based generation has fallen from 8-12GW to just 2GW, it said. Also, there is a high probability of a shortfall in hydro energy this summer due to a deficit in winter rainfall and snow cover in the first four months of 2026, it further said, adding that all these factors put India at risk of evening peak power deficit.
JM Financial said that in this background, wind energy has a strong diurnal (daily) complementarity with solar energy and is available in the evening hours as well. The domestic brokerage kept a ‘Buy’ call on Suzlon Energy shares, with a target price of Rs 64 apiece. This implies an upside potential of more than 21% from the stock’s previous closing price of Rs 52.93 apiece. Notably, Suzlon has the highest upside potential among all the power stocks under JM Financial’s coverage.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)