Suzlon share price has been on a downtrend in recent days, losing 6% in the last five sessions and down by 16% in the last month. The stock was down by 2% at the time of writing and traded near Rs 54.45, near two-month lows. Breaking the Rs 56.00 support has cemented bearish view of Suzlon, which currently trades below 10, 20, 50 and 200 Exponential Moving Average (EMA) levels.
Suzlon’s Decline Doesn’t Reflect Intrinsic Value
A strong labour market report from the United States on Friday dampened the prospect of interest rate cuts in the first quarter of the year despite inflation remain sticky. That has put downward pressure on equity markets across the world, with the dollar strengthening and yields on US treasuries rising.
Returns on benchmark 10-year US treasury bonds were at 4.73 percent at the time of writing. Also, the DXY dollar index was at 110.76, the highest level since November 2022. This set-up has seen a significant outflows by foreign institutional investors from Indian equities markets. The Nifty 50 Index was at 23,085 points, the lowest since June 2024 at the time of writing. Similarly, the Sensex Index was at 76, 330, its lowest since that time.
Suzlon share price is down by more than 36% from its peak. However, despite its troubles, the company has a strong order book, with 5.1 Gigawatt (GW) worth of orders set completion in the next 24 months.
Also, the Indian government’s focus on infrastructure-driven economic development favours the continuation of high capital investment in green energy project. This sets up Suzlon (NSE: SUZLON) to rebound in the medium-term.
Suzlon Share Price Prediction
Suzlon share price pivots at Rs 56.35 and the downside will prevail if resistance prevails at that level. With the sellers in control, immediate support is likely to be at Rs 54.00. However, a stronger downward momentum is likely to break below that level and potentially test Rs 51.00.
Alternatively, the buyers will take control if the price breaks above Rs 56.35. If that happens, the first hurdle will likely be at Rs 58.60. Breaking above that level will invalidate the downside narrative and such a momentum could trigger further gains to test Rs 60.30.
The post Suzlon Share Price Extends Decline, But Here’s Why It’s Worth Buying appeared first in UK on InvestingCube.