Solar and renewable energy stocks remained in focus on Monday as investors monitored developments around India’s domestic solar manufacturing ecosystem and company-specific earnings and technical trends.
Suzlon Energy, Premier Energies and Waaree Energies shares fell slightly in the session due to profit-taking and a muted trend in the Indian stock market.
Suzlon Energy shares fell as much as 1.10% to Rs 47.57, and Premier Energies declined 0.57% to Rs 1,040 on the BSE. Waaree Energies shares slipped as much as 0.36% to Rs 2,693.60.
The three stocks also have attracted attention because of recent developments in India's solar manufacturing supply chain and recent company-specific announcements.
Solar stocks in focus on Polysilicon PLI report
The renewable energy stocks came into focus after news that the government is considering a production-linked incentive (PLI) scheme for polysilicon manufacturing.
The initiative is aimed at strengthening India’s solar supply chain and reducing India's reliance of India on imports of materials.
Polysilicon is an essential raw material used in the manufacture of solar photovoltaic modules and is currently sourced entirely from overseas.
India's PLI programme for solar PV modules covers several stages of the value chain such as ingots, wafers and polysilicon on the upstream side and cells and modules downstream. However, uptake in some upstream segments has been limited.
Any steps to boost domestic polysilicon production could therefore have implications for India’s broader solar manufacturing ecosystem.
Premier Energies Q1 profit rises 53%
Premier Energies has been in the spotlight since the June-quarter results were released on August 7.
The company reported a 53% year-on-year increase in consolidated net profit to Rs 471.9 crore for the first quarter of FY27. Total income also rose to Rs 2,507.6 crore from Rs 1,869.5 crore in the same quarter of last year.
Premier Energies produced 844 MW of solar cells, 953 MW of solar modules and 570 MVA of transformers during the quarter.
The company's order book at the end of the quarter was about Rs 150 billion, which was up 74% year-on-year. The inflow of orders rose 67% year-on-year to Rs 33 billion.
ICICI Securities said the company’s wafer-to-cell spread is still healthy while the cell-to-module spread has decreased sharply. The brokerage has a Buy rating on Premier Energies with an unchanged target price of Rs 1,250.
Suzlon Energy Technical Analysis
Suzlon Energy shares had been consolidating in the Rs 48-Rs 49 range over the past week before slipping below the lower end of that range.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said that the stock is now trading below key moving averages.
The rising ADX (Average Directional Index) is also pointing towards strengthening bearish momentum.
Shah said that as long as Suzlon Energy shares are still below the Rs 49-Rs 50 zone, the technical trend is likely to remain bearish.
The Rs 49-Rs 50 region could be an important resistance zone for traders as well. If a move above that area can change anything in the technical setup, and the price remains below it, it would keep the bearish bias intact.
Premier Energies Technical View
Premier Energies shares have been in a relatively broad consolidation range.
Since July 22, the stock has been trading at Rs 977 to Rs 1,063 in a direction still not clear.
Shah pointed out that in the last six trading sessions, the stock has hovered around its 20-day and 50-day exponential moving averages (EMAs). The flattening of these moving averages indicates a sideways bias.
We also see that the weekly ADX has stayed flat, so this is a signal of little directional momentum and volatility.
According to the technical view, a decisive breakout above Rs 1,063 or breakdown below Rs 977 could provide the next meaningful directional signal for the stock.
Until such a breakout occurs, the technical situation is still one of consolidation.
Waaree Energies Technical Analysis
Waaree Energies has a comparatively weaker technical structure.
The stock remains in a downtrend with a lower-low and lower-high formation. The MACD line is below the zero line, and the bearish bias is clear.
The stock is also trading below key moving averages, which reinforces the negative technical setup.
According to Shah, the Rs 2,790-Rs 2,800 zone is the one to be taken as immediate resistance. The bearish bias will still be in place as long as Waaree Energies trades below this zone.
It could be that a sustained move above Rs 2,800 would provide some relief to the stock's technical structure, but further rejection around resistance could keep the downtrend intact.
What Investors Should Watch
The three stocks present different technical setups.
Suzlon Energy is showing weakness after breaking below its recent consolidation range, and Rs 49-Rs 50 is now an important resistance zone.
Premier Energies is mainly range-bound between Rs 977 and Rs 1,063, with traders looking for a decisive breakout or breakdown before taking the next directional cue.
Waaree Energies, meanwhile, remains technically weak with its lower-low and lower-high pattern and negative MACD pointing towards continued bearish pressure. The Rs 2,790-Rs 2,800 zone remains a key hurdle.
At least at the fundamental level, developments in India’s domestic solar manufacturing ecosystem and strong earnings growth at companies like Premier Energies could continue to keep the renewable energy segment in focus.
But investors should really think about what makes the future better: the fundamental growth prospects and short-term technical trends. And earnings performance (and thus long-term market sentiment) need not translate into immediate stock-price growth, especially when the market context and valuation matter.
For the three stocks, the next major technical levels and upcoming corporate developments will be crucial to determine whether the recent weakness develops into a deeper correction or a fresh uptrend.
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