Comments
We recommend a sell in the stock of NTPC from a short-term horizon. It is evident from the charts of the stock that it has been in a long-term downtrend ever since peaking out from its December 2009 peak of Rs 241. The stock has been forming lower peaks and lower troughs. After encountering key resistance at around Rs 175 in August and September 2012, the stock started declining. In late November, the stock decisively breached its significant support and its 200-day moving at around Rs 165 and continued its downtrend.
It is hovering well below its 50- and 200-day moving averages. Moreover, the stock declined 1.5 per cent with above average volume and closed below its 21-day moving average on Thursday. Short-term trend for the stock is down.
Both daily and weekly price rate of change indicators are on the brink of entering the bearish zone from the neutral region. The daily as well as weekly moving average convergence divergence indicators are featuring in the negative territory implying downward momentum. The price rate of change indicators are hovering in the negative terrain implying selling interest.
We are bearish on the stock from a short-term perspective. We expect its fall to continue and reach our price target of Rs 148 or Rs 145 in the upcoming trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 157.2 levels.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.