Suzlon Ltd: Might have bottomed out today

Suzlon Energy Ltd might have bottomed out today at Rs.21.85--22.10 ranges. The next target seems to be Rs.26.5--27.10, considering the chart pattern. However, on its way up the scrip might find some resistance at around Rs.23.70-24.40 ranges. Also, it seems at around Rs.26.60--27.10, the first phase of the rally would be complete, after which a fresh cycle might start taking the scrip a little higher, may be to around Rs.29.30--31. The 10 DEMA is placed at Rs.23.31 while 10 DSMA is placed at Rs.23.41. 

I have already said that according to my sources, the company (Suzlon Energy Ltd) would do much better in FY13 and FY14, with an order back log of around (massive), Rs.39, 000 Cr. Moreover, the company is also looking for setting up offshore wind mills for the steady generation of power, and which could be ready within the next couple of  years. The company has also the sought government's attention in this direction.
Moreover, the news that, the renewable energy ministry is planning to re-introduce incentives for the wind energy sector to allay fears that capacity addition could fall after the sops were withdrawn from April 1, 2012, is positive for global leaders like Suzlon Energy Ltd. 
It is to be noted that the the government rolled back two key incentives for the sector this year: accelerated depreciation and generation-based incentive. Industry players say the withdrawal of these sops will keep power producers at bay and could reduce annual capacity addition to less than 1,000 mw in 2012-13, against the target of 3,000 mw. "We have requested the finance ministry again to reconsider introducing the incentives for the current financial year. They see the merit in our request and we have comfort that we should be able to reinstate it," a senior ministry official said. 

Sources said there was consensus within the ministry for extension of the two incentives ahead of the Union Budget, but the government ended the tax break from March 31, much against the wishes of industry players. 

"We are working on the proposal and hope to put it before the cabinet for approval within two months," the official added. For full news please CLICK HERE.