'Exit Suzlon' on any meaningful pullback, a chartist advises

Shares of Suzlon Energy Ltd. were under pressure on Tuesday, December 2, extending their losing streak to a fourth straight session.

Despite the continued decline, the stock has not yet slipped into "oversold" territory, with its Relative Strength Index currently at 37. An RSI reading below 30 typically signals oversold conditions.

Suzlon has corrected more than 25% over the past six months, raising concerns among investors about whether this is the right time to buy.

Addressing a viewer query on CNBC Awaaz, Ashish Bahety, Technical and Derivative Research Analyst, noted that Suzlon's inclusion in the F&O segment has opened up shorting opportunities, leading to fresh short positions in the stock.

He cautioned that being an F&O stock means aggressive shorting can continue.

Bahety suggested maintaining a stop loss at ₹51 and advised that investors should look to exit on any meaningful pullback.

Suzlon Energy's second quarter earnings were better than what the street had estimated.

The company's net profit surged to ₹1,278 crore from ₹200 crore last year, aided by a tax write-back of ₹718 crore. Even after the adjustment, the profit was still up by over 100% from the previous year.

Suzlon's revenue was up 84% at ₹3,870 crore from ₹2,103 crore last year. Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased ₹720 crore, a 2.5x jump from the ₹293.4 crore it reported in the second quarter last year.

Suzlon's EBITDA margin expanded by 460 basis points to 18.6% from 14% in the year-ago period.

Of the nine analysts who have coverage on Suzlon Energy, eight have a 'Buy' rating, and one has a 'Hold' rating.

Suzlon Energy shares are currently trading 0.61% lower at ₹53.39 and have fallen 18% so far in 2025.