Indian equity markets experienced a slight downturn on Friday following the Reserve Bank of India's policy announcement, which included a downward revision of growth forecasts. Amidst this market sentiment, technical analyst Muthuselvaraj M from Mirae Asset ShareKhan has provided trading recommendations for key energy sector stocks: JSW Energy, INOX Wind, and Suzlon Energy, ahead of Monday's trading session.
JSW Energy: Bullish Outlook with Clear Targets
JSW Energy Ltd. has demonstrated a strong bullish trend, characterized by a "higher top, higher bottom" pattern on its daily chart. The stock is currently trading above all short-term exponential and moving averages, signaling sustained upward momentum. Despite a recent correction from its peak at Rs 618, the analyst anticipates continued upward movement, projecting target prices between Rs 625 and Rs 640.
Investors should note a key support level identified at Rs 566, which aligns with the 38 percent retracement of its recent swing low. Momentum indicators for JSW Energy remain positive, reflecting ongoing buying interest and suggesting the positive trend will persist.
INOX Wind: Short-Term Caution Advised
For INOX Wind Ltd., the outlook is more cautious in the short term. The stock has formed a "lower top, lower bottom" candlestick pattern on the weekly timeframe and its price has fallen below all exponential moving averages, indicating negative sentiment. The analyst suggests avoiding fresh buying for short-term traders and medium-term investors until the price surpasses the resistance level of Rs 96.
Both MACD and RSI momentum indicators show a negative crossover and are trending downwards, positioned below 48. While existing investors may hold positions if the support at Rs 81 holds, the overall expectation is for the stock to trade sideways to negative.
Suzlon Energy: Positive Momentum and Breakout Potential
Suzlon Energy Ltd. has been consolidating within the Rs 51-57 range since its Q4 FY26 results, now forming a flag pattern on the daily chart. The trend is considered positive above the Rs 57 hurdle for both short and medium terms. A decisive break above this level could propel the stock towards target prices of Rs 75-85.
The stock benefits from support by the 200 and 20 EMAs, situated at Rs 52 and Rs 54 respectively. The daily momentum indicator RSI is above 55, pointing to a 'buy on dip' opportunity as long as the Rs 50 support level holds on the downside for the short term. Suzlon Energy's overall strength remains intact, with continued positivity expected.