Suzlon Rises but Won't Go Far

SUZLON Daily NSE Stock Chart Technical Analysis:

Suzlon made a U-turn today and closed higher than yesterday.

Open:  48.2     Close & CMP: 50.95

Market Outlook:

• The reversal has aroused hopes, but the strength seems weak and there is no sign yet that this will be a strong reversal.   
• It has only enough strength to carry it up to the resistance at 54.50.  I will raise my eyebrows to notice this stock if it goes above 56 in this same move.  Until then, refrain from getting in.

Technical Indicators:

• There is a support line at 48
• The resistance line has formed at 54.50, where the stock has faced resistance once in the last month as well.
• A Reverse Dark Cloud Cover pattern has formed, which is a positive sign.
• The momentum is already mid-way and the trading volume is moderate.  The current reversal seems short-lived.

SUZLON Daily NSE Stock Chart Technical Analysis

Suzlon: Indecisive & Weak for the time being

SUZLON ENERGY Daily NSE Stock Chart Technical Analysis:

Suzlon Energy is moving sideways and the market is wondering what to do with this stock in the near future.

The price opened at Rs 57.4 and closed at Rs 57.75 after moving up and down the entire day.

Market Outlook:  The price will move sideways and remain between 59 and 56.5.  

Technical Indicators:

• Resistance is at Rs 59 and support is at Rs 56.5 and then at Rs 55.  Both these price levels are important to watch.  If and when the market breaks 55 with high trading, there is a short-term opportunity to go short.  The opportunity to go long seems unlikely in near future.
• The price had taken support of its 100 day moving average in the previous low swing.  The price is facing resistance at its 20 day moving average, both shown on the chart as red and blue lines.

News:

• Suzlon is planning to go big in China next year.  This might be positive for the company.  Suzlon is currently facing some litigation on land acquisition issue which can generate bad press for the company.
• The company board has agreed to raise Rs 5000 crores via the share market, so keep an eye on this stock as there could be an opportunity to go long in 2011.  For now, nothing immediate and good is on the cards.

(Suzlon Energy analysis requested by Jaikrishna, Ranchi)