Ahead of rights issue, charts hint steady gains for Suzlon; 200-DMA is key

There is a bullish formation of a "Higher High, Higher Low" pattern on the daily chart, and only if the stock breaks the 200-DMA the trend could turn negative.

Suzlon Energy is likely to be in focus in the near term, as the company's Rs 1,200 crore rights issue opens for subscription on October 11. The company will be issuing up to 240 crore shares with a face value of Rs 2 each at Rs 5 per share. The rights issue closes on October 12.

Recently the rights issue got a fillip, after Dilip Shanghvi, the Managing Director of Sun Pharmaceutical Industries expressed his willingness to the promoters of the company to fully participate in the upcoming Rs 1,200-cr rights issue. In the past, Shanghvi had bought a 23