Shares of Waaree Energies Ltd marked a significant upward trajectory as they extended gains for an eighth consecutive session, climbing 7.63% to a record ₹3,740.75 against the previous close of ₹3,475.30. This rally in the stock pushed the company's market capitalisation above ₹1 lakh crore for the first time, reaching ₹1.03 lakh crore.
This surge highlights growing confidence among investors looking to invest in stocks in the renewable energy sector, driven by Waaree’s expanding presence in the solar energy space.
Turnover soars as trading volumes increase
Waaree Energies experienced robust trading volumes with 7.64 lakh shares exchanged, generating a turnover of ₹275.57 crore on the Bombay Stock Exchange (BSE). This notable activity underscores the investor interest in Waaree Energies as it continues to establish itself as a prominent player in the renewable energy market.
Analysts are optimistic yet cautious, suggesting key support and resistance levels for investors. It was noted that support for the stock is positioned at ₹3,400, while resistance is projected at ₹3,650. Moreover, a decisive move above ₹3,650 could propel the stock further, potentially hitting ₹3,750 in the short term while maintaining a trading range between ₹3,400 and ₹3,750. This view reflects a cautious but positive outlook as Waaree’s stock continues to attract attention amid broader market dynamics.
Advice for investors on profit-booking
In light of Waaree’s performance, other analysts have similarly urged investors to consider profit-booking. One analyst remarked that the stock's rally from its initial public offering (IPO) price reflects significant capital appreciation, urging market participants to evaluate their positions. This approach is particularly relevant for those who may want to reinvest gains or explore other promising stocks in similar sectors.
Background and IPO success
The Mumbai-based solar energy firm’s IPO, held from 21 to 23 October, saw robust investor interest, raising ₹4,321.44 crore. The offering included a fresh share sale of ₹3,600 crore and an offer-for-sale of up to 48 lakh equity shares. Waaree Energies utilised the IPO to strengthen its capital base, allowing it to support ongoing projects and further bolster its market position.
Strategic position in the renewable energy sector
Waaree Energies, a leader in solar PV modules manufacturing, has an installed capacity of 12 GW and an expansive portfolio of solar energy products, including multicrystalline, monocrystalline, and TopCon PV modules. The company's strategic focus on solar energy aligns with the rising demand for renewable power solutions, making it an attractive option for investors looking to invest in stocks with high growth potential in sustainable energy.
Looking ahead
As Waaree Energies continues to capture investor interest, market analysts will be closely watching its performance, especially as it approaches potential resistance levels. While some caution against the stock’s overbought state, its recent uptrend and growing market capitalisation underscore the company’s promising outlook in India’s renewable energy landscape.
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