Suzlon Energy stock has been trading below major support levels and if the stock trades in this zone, we could see further decline. However, downside could be limited considering the positive performance of the company and Indian government's push for green energy. Suzlon share price managed to keep Rs 50 level safe during the monthly lowest level seen on January 28. The stock smartly recovered to Rs 58 on January 31 but has been sliding in February. If we don't see break of Rs 50 levels, the next resistance for Suzlon Energy is at Rs 62 (as per technical charts).

Suzlon Energy's Vision for Renewable Growth Aligned with Union Budget 2025

Girish Tanti, Vice Chairman of Suzlon Energy, expressed optimism about the Union Budget 2025, highlighting its alignment with Prime Minister Modi’s Vision 2030. The budget's emphasis on the National Manufacturing Mission, National Export Mission, and the Green Corridor Initiative is expected to bolster India's renewable energy ambitions. Suzlon Energy's role in this transformation is vital, with plans to harmonize wind and solar policies, increase local content in wind energy manufacturing, and enhance renewable grid infrastructure. However, despite these promising developments, Suzlon's stock performance indicates ongoing technical challenges, raising caution for investors in the short term.

Key Initiatives Driving India’s Green Energy Transition

The Union Budget 2025 introduces initiatives to strengthen India's renewable energy infrastructure, focusing on domestic manufacturing, export growth, and grid expansion. Girish Tanti emphasized how these missions are pivotal to India's long-term sustainability goals.

National Manufacturing Mission:
This initiative seeks to develop India's Make in India ecosystem by harmonizing policies for both wind and solar energy sectors. The objective is to create a robust supply chain for renewable energy technologies.

National Export Mission:
By positioning India as a global hub for green energy, the mission aims to raise local content in wind energy from 64% to 85% by 2030. This will boost India's competitiveness in the international renewable market.

Green Corridor Initiative:
This initiative focuses on enhancing grid infrastructure to support renewable integration. Improved grid systems are essential to managing the variable supply of solar and wind energy efficiently.

Harmonization of Wind and Solar Energy Policies

Tanti highlighted the importance of harmonizing policies between wind and solar energy sectors, including production-linked incentives (PLIs) and domestic content requirements.

Complementary Energy Production:
Solar energy primarily generates electricity during daylight hours, while wind energy can supplement peak demand in the early morning and evening. Developing both sectors in tandem can lead to a more balanced and cost-effective energy supply.

Policy Alignment:
Integrated policy frameworks will drive the simultaneous growth of these sectors, ensuring investments and incentives are distributed to optimize India’s renewable capacity.

Challenges in Project Implementation

While the policy framework is promising, Tanti noted challenges in last-mile project execution, particularly in rural areas where many renewable projects are located. Engaging local communities and addressing socio-economic concerns are essential for successful implementation.

Efforts to overcome these challenges include:

Collaborating with local governments to improve project timelines,
Creating economic opportunities for communities in project areas, and
Expanding renewable infrastructure with a focus on rural development.
Despite these challenges, Tanti remains optimistic that India will meet or exceed its 500 GW renewable energy target by 2030.

Suzlon's Stock Performance Indicates Technical Weakness

Suzlon Energy’s stock price has faced a sharp correction, with the price retracing 44% from its peak of Rs. 85.85. The decline followed a strong rally earlier in 2024, driven by renewed investor interest in renewable energy stocks.

Key Technical Observations

Moving Averages:
Suzlon’s stock has fallen below critical technical indicators, including the 50-week moving average and both the 50-day and 200-day moving averages (DMA). These indicators have formed a negative crossover, signaling a bearish trend.

Relative Strength Index (RSI):
The daily and weekly RSI values are below median levels, indicating weak price momentum. The monthly RSI also shows a negative slope, further reinforcing the downtrend.

Price Strength:
The stock has underperformed both its 12-month average and the Nifty50 index, indicating low buyer demand and reduced investor confidence.

Resistance and Support Levels

Overhead resistance levels are situated around Rs. 62 to Rs. 60.75, where the 200 DMA and 50 DMA converge. For the stock to regain bullish momentum, it must decisively break above this resistance zone.

Key levels to watch include:

Immediate Resistance: Rs. 62
Immediate Support: Rs. 55
Near-Term Downside Target: Rs. 48, as predicted by technical analysts.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, commented, "The counter looked weak on daily charts. A close below Rs. 55 level can trigger a fall towards Rs. 48 in the near term."

Investment Outlook and Strategy

Investors should approach Suzlon Energy with caution, given the stock's current technical weakness and broader market volatility. Short-term traders are advised to avoid new purchases until the stock demonstrates a clear recovery above key resistance levels.

For long-term investors, Suzlon's prospects remain tied to:

New policy developments supporting renewable energy,
Execution of large-scale projects, and
Government incentives promoting domestic manufacturing and exports.
Investors should monitor both technical and fundamental indicators to gauge the stock’s future direction.