Suzlon Rally May Be Short-Lived, Says Chartist; Advises Selling Into Strength

Suzlon Stock Extends Its Losing Streak as Technical Indicators Send Mixed Signals

Shares of Suzlon Energy Ltd. remained under pressure on December 2, marking the fourth straight session of declines and adding to the concerns of investors who have watched the stock correct over 25% in the past six months. Despite the consistent weakness, the stock has not yet entered the classic oversold zone, making the next move for Suzlon a subject of debate within trading circles.

The stock’s Relative Strength Index (RSI) stands at 37, staying above the oversold threshold of 30. For many traders, this indicates the correction may not be over—and the downside risk may still persist unless strong buying emerges. The situation is particularly critical for retail investors who are unsure whether this extended decline represents a buying opportunity or a signal to remain cautious.

Why the Chartist’s View Suggests Caution: ‘Exit Suzlon’ on Pullbacks

Addressing a viewer’s query on CNBC Awaaz, Ashish Bahety, Technical and Derivative Research Analyst, offered a cautious perspective on the Suzlon stock trend. His key point was clear:
Suzlon’s inclusion in the Futures & Options (F&O) segment has opened the door to aggressive shorting, which can deepen volatility and prolong downside pressure.

Bahety noted that as an F&O-eligible stock, Suzlon can witness continuous short build-up, especially when sentiment is weak. This dynamic, he explained, has already resulted in fresh short positions, adding momentum to the stock’s recent fall.

The chartist advised that investors should keep a strict stop-loss at ₹51, emphasizing the importance of capital protection in highly fluctuating counters. According to him, rather than averaging at lower levels, investors should look to exit Suzlon on any meaningful pullback, preserving gains or minimizing potential losses.

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Sharp Correction Comes Despite Robust Q2 Earnings Performance

While technical indicators paint a subdued picture, Suzlon Energy’s fundamentals have shown significant improvement. The company’s second-quarter earnings beat market expectations, bringing renewed attention to its turnaround story.

Here are the key financial highlights:

• Net profit soared to ₹1,278 crore, compared to ₹200 crore last year.

• The jump was aided by a ₹718 crore tax write-back, but even excluding this adjustment, profit doubled year-on-year.

• Revenue surged 84% to ₹3,870 crore, reflecting strong execution momentum.

• EBITDA rose to ₹720 crore, more than 2.5x the previous year’s ₹293.4 crore.

• EBITDA margin expanded by 460 basis points, climbing from 14% to an impressive 18.6%.

These performance metrics reflect Suzlon’s ability to strengthen its operational efficiency, reduce costs, and improve balance sheet health. For long-term investors, the numbers highlight an encouraging shift in fundamentals—a key reason why many analysts still remain optimistic.

Despite Technical Weakness, Analysts Maintain Bullish Ratings on Suzlon

Interestingly, despite the ongoing correction in Suzlon’s share price, market analysts remain largely positive on the company’s long-term prospects.
Out of nine analysts tracking the stock:

• Eight have a ‘Buy’ rating,

• One has a ‘Hold’ rating,

• None have a ‘Sell’ recommendation.

This bullish consensus highlights the fundamental strength investors see in the renewable energy player, especially as India accelerates its transition toward wind and hybrid energy solutions. Suzlon’s renewed focus on execution and its improving margin profile have only strengthened this belief.

Yet, technical analysts argue that near-term pressure should not be ignored, particularly with the stock still vulnerable to speculative F&O activity and fresh short positions.

Suzlon Share Price Outlook: What Investors Should Watch Now

As of the latest trade, Suzlon Energy shares were down 0.61% at ₹53.39, extending their losses to 18% in 2025. This combination of a strong operational recovery and weak price action has created a divergence that investors must understand carefully.

Key factors to track in the coming weeks include:

• Whether the RSI moves closer to the oversold zone

• F&O short-covering or further short build-ups

• Broader market sentiment toward renewable energy stocks

• Updates on order wins, capacity additions, and execution pace

While the long-term narrative remains supportive, the short-term outlook appears volatile, making disciplined risk management essential.

The Bottom Line: Balance Fundamentals With Technical Realities

Suzlon’s strong earnings revival presents a compelling long-term picture, but the technical reality suggests caution in the immediate term. With the stock still under pressure and aggressive shorting likely to continue, investors may benefit from following a pullback-based exit strategy, as advised by the chartist.

For investors with a long-term horizon, the company’s improving fundamentals and strong analyst backing remain encouraging. But until the charts stabilize, prudence may be the best strategy.

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