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NTPC-STOCK TECHNICALS

Author: Srinivas Krishnan Bobba/Wednesday, January 20, 2021/Categories: Exclusive

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NTPC-STOCK TECHNICALS

NTPC Ltd, formerly known as National Thermal Power Corporation Ltd, is an Indian public- sector undertaking (PSU), engaged in the business of generation of electricity and allied activities. It is a company incorporated under the Companies Act-1956 and is promoted by the Government of India (GoI). The headquarters of the company is located in New Delhi. NTPC’s core business is the generation and sale of electricity to state-owned power distribution companies and State Electricity Boards (SEBs) in India. The company also undertakes consultancy and turnkey project contracts that involve engineering, project management, construction management, and operation and management of power plants. The company has also ventured into oil and gas exploration and coal mining activities. It is the largest power company in India with an electric power generating capacity of 62,086MW. Although the company has approximately 16 per cent of the total national capacity contributes to over 25 per cent of total power generation due to its focus on operating its power plants at higher efficiency levels (about 80.2% against the national PLF rate of 64.5%). NTPC currently generates 25 billion units of electricity per month.


On the technical front, NTPC has higher highs and higher lows on the daily charts and is currently placed above the long-term EMAs in the daily frame. In the recent past, after clocking a low of Rs78 level, the stock has witnessed a bounce and rallied to the current levels. At the current juncture, the stock has formed a base of around Rs89 level on the lower side and is all set to move higher. The overall chart structure of the counter looks bullish from current levels and is witnessing a bounce from the support zone around Rs95-96 levels. This may trigger a fresh round of buying, which may take the stock towards Rs115 plus levels. The stock is currently performing in line with the broader markets indicating the inherent strength in the counter and is trading well above the major long-term support levels. On the Bollinger band (20,2), the stock price is trading above the mean with the upper band facing in the northward direction indicating the price likely to move higher. Analyzing the recent volume price action, the volumes have been encouraging in the recent up move indicating strong hands have started accumulating the stock at current levels. On the oscillator’s side, RSI (14) is trading in a comfortable zone of above 60 levels indicating the intact bullishness in the stock. We expect the counter to continue its outperformance in the coming trading days as well and may move towards Rs120 level in the medium-term. Any correction towards the recent support levels of Rs89 level may be utilized to average the positions.

Srinivas Krishnan Bobba, Deputy Manager (technical research analysis) Karvy Stockbroking Ltd

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The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

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