Technical Analysis

NTPC (₹100.7): Buy

Yoganand D BL Research Bureau | Updated on June 23, 2020 Published on June 24, 2020

Investors with a short-term perspective can buy the stock of NTPC at current levels. The stock recorded a 52-week low at ₹74 in late March this year and changed direction triggered by positive divergence on the daily RSI. Since then, the stock has been in a medium-term uptrend. But, the stock had encountered a key resistance at ₹98 in late April and was on a sideways consolidation phase in the wide band between ₹85 and ₹98 until recently.

On Tuesday, decisively breaching the upper boundary as well as a key resistance at ₹98, the stock jumped 5.8 per cent with above average volume. Moreover, the stock’s rally conclusively surpassed the 21- and 50-DMAs and the stock trades well above these moving averages. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Further, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.

The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹105 and ₹108 in the upcoming trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹98.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on June 24, 2020
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