Renewable Energy Shares Surge on Dalal Street as Experts Map Out Risk Strategies

Market Surge

Renewable energy shares saw strong buying on Monday amidst a soaring Indian stock market. Jaiprakash Power Ventures opened higher and touched an intraday high of ₹13.75, which is a rise of over 7 percent compared to its previous close of ₹12.72. Suzlon Energy shares went up by over 4 percent, Vedanta Power rose 7 percent, and Reliance Power added around 5 percent. Inox Wind recorded the highest jump with its share price rising over 11 percent.

Expert Recommendations

Market experts have advised caution while picking stocks from this renewable energy group. Avinash Gorakshkar, Founder of Avinash Mentor Research, warned investors to avoid Jaiprakash Power Ventures and Reliance Power. He noted that Reliance Power's rally is purely sentimental with no fundamental reason, while Jaiprakash Power Ventures suffers from a high promoter pledge level of around 75 percent and cyclical earnings drops. Seema Srivastava, Senior Research Analyst at SMC Global Securities, recommended splitting primary portfolio allocations between Suzlon Energy as the structural market leader and Inox Wind as the high-momentum turnaround play for growth-oriented portfolios. She described Suzlon as suitable for investors wanting financial stability and lower balance-sheet risk, while Inox Wind suits high-risk investors looking for a smaller-cap turnaround. Srivastava added that Vedanta Power remains a safe, defensive option for traditional utility value.

Technical Outlook

Mahesh M Ojha, VP for Research and Business Development at KC Securities, shared key technical levels for these stocks. For Inox Wind, he noted a hurdle at ₹59, with expected targets of ₹65 and ₹74 upon breaking that resistance, while suggesting a stop-loss of ₹54. For Suzlon Energy, he identified strong support at ₹30.80 and a hurdle at ₹39.50, with potential targets of ₹42 and ₹48. For Vedanta Power, he stated that the stock has support at ₹30.80, with upside targets of ₹42 and ₹45 for investors maintaining a stop-loss at the support level.

Context

Stock market analysts regularly track technical indicators like support and resistance levels to help investors manage risk during high market activity. Sector-specific rallies often prompt experts to differentiate between companies based on their debt levels, promoter holdings, and fundamental financial health.