Suzlon Share Price: When the exchanges ended the additional surveillance on wind turbine maker Suzlon Energy Ltd (NSE: SUZLON), the shares celebrated it.
The exchanges had kept it in the first stage of the Additional Surveillance Measure (ASM) framework but now it is out of it. Due to this, the share jumped more than 3 percent on Friday.
Some investors took advantage of this rise but it is still in a very strong position. On Friday, Suzlon Energy Ltd’s stock closed at Rs 83.58 with a jump of 3.22 percent on BSE. Intra-day it jumped 3.69 percent to reach Rs 84.
Why Were The Exchanges Keeping An Additional Watch On Suzlon?
Suzlon Energy Ltd’s share has jumped 223.33% in a year and Nifty has jumped only 27 percent during this period. Along with this huge rise in the share, Suzlon Energy Ltd was kept in the first stage of ASM on some other parameters.
The exchanges keep an eye on any unusual fluctuations in the stocks included in this category and investors also have to use a 100 percent margin for trading.
Under this, the stocks are kept after testing the parameters of high-low variation, client concentration, number of times the pride band is hit, close-to-close variation, and price-earnings ratio.
This work is done so that speculative trading can be controlled and risk can be reduced.
Buy Now Or Not?
After coming out of the ASM framework, there is a bullish trend in the stocks but according to the technical analyst of Stocksbox, its speed is slowing down.
The Relative Strength Index (RSI) has a downward trend which is an indication of negative divergence against the price. The analyst says that it had to face resistance at the level of Rs 84.30.
At this level, it had to return to high volume. Its relative strength is falling against Nifty. In such a situation, analysts advised to avoid buying it at the current price.
Quick Fact
| Company name | Suzlon Energy |
|---|---|
| Share rise 1 year | 223.33% |
| Nifty rise 1 year | 27% |
| Surveillance Framework | Additional surveillance removed |
| Surveillance stage | First stage |
| Trading margin requirement | 100% |
| Surveillance criteria | High-low variation, client concentration, price band hits, close-to-close variation, price-earnings ratio |
| Share jump Friday | 3.22% |
| Highest intra-day jump | 3.69% |
| Friday closing price | ₹83.58 |
| Highest price Friday | ₹84 |
| Analyst advice | Avoid buying at the current price |
| Resistance level | ₹84.30 |
| Analyst observation | RSI showing negative divergence |
| Price trend | Bullish but slowing down |
| Relative strength | Falling against Nifty |
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