Shares of Suzlon Energy Ltd. are down another 5 percent on Wednesday. The stock is locked in a lower circuit. This is the second straight day in which the stock is down in a lower circuit of 5 percent.

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With Wednesday's move, the stock is down for the fourth straight session. The last instance of the stock falling for four days in a row was back in June. Before the four-day correction, the stock had doubled from the June lows of Rs 13.

Today's drop in Suzlon's shares are on volumes that are 30 percent higher than their 20-day average at this time of the day. Close to 14 crore shares of the company have already been traded so far, compared to the 17 crore shares traded on Tuesday and 10 crore on Monday.

On the charts, the stock is declining towards its 50-Day Moving Average, which is placed at 20.30. Its 100 and 200-Day Moving Averages are placed further lower at 15.8 and 12.44 respectively.

From overbought zones of 81 at the start of the month, the stock's Relative Strength Index (RSI) has slipped below the 50 mark, currently at 47. RSI above 70 means the stock is in overbought territory, while RSI falling below 30 means that the stock is oversold.

After a successful QIP in which the company raised Rs 2,000 crore, Suzlon's Group CFO Himanshu Mody explained that about Rs 1,500 crore would go towards debt repayment and the balance will be for working capital and capex purposes.

"This would mean that Suzlon's balance sheet would be completely debt free, in fact, net debt free after a sort of hiatus of 15 years, so we wouldn't in fact be cash surplus without any debt on the balance sheet," Mody said.

Shares of Suzlon ended 2.8 percent lower at Rs 22.2.

First Published:Sept 13, 2023 11:22 AM IST