The long and medium outlooks for NTPC (₹117.35) appear negative, as long as the stock rules below ₹145. In the short-term, the stock may show some resilient. While the immediate support appears at ₹113, a close below ₹105 has the potential to trigger a fresh fall on the stock. On the other hand, it finds immediate resistance at ₹123 and the next one at ₹135. We expect the stock to move in a range with an upward bias, given the current fall.

F&O pointers: The NTPC November futures added open interest on Friday despite a decline in the share price, signalling short-build up. Option trading indicates that NTPC could move in a range of ₹115-120.

Strategy: We advise traders to buy ₹120-call on NTPC. The option closed at a premium of ₹1.60. As the market lot is 4,800 shares, this would cost investors ₹7,680. The premium (₹7,680) paid would be the maximum loss one can suffer in this. For that to happen, NTPC has to stick below ₹120. As only a close above ₹121.60 will turn the position profitable, we advise, traders who can afford to take the risk should only consider this strategy.

Book profits if the stock moves to ₹123. Traders could exit the position if the loss mounts to ₹1,500.

Alternatively, traders, with a high-risk appetite, could consider going long on NTPC futures with a stop-loss at ₹113. If the stock opens on a positive note, the stop-loss can be shifted to ₹117 and aim for an initial target of ₹123 with trailing stop-losses.

Follow-up: ICICI Bank moved on expected lines. Those who could not book profits can consider holding it for another week.

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