NTPC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | NTPC | Market Cap | 3,87,042 Cr. | Current Price | 399 ₹ | High / Low | 414 ₹ |
| Stock P/E | 19.2 | Book Value | 173 ₹ | Dividend Yield | 2.09 % | ROCE | 12.2 % |
| ROE | 13.6 % | Face Value | 10.0 ₹ | DMA 50 | 381 ₹ | DMA 200 | 357 ₹ |
| Chg in FII Hold | 0.30 % | Chg in DII Hold | -0.06 % | PAT Qtr | 4,987 Cr. | PAT Prev Qtr | 4,653 Cr. |
| RSI | 58.3 | MACD | 7.84 | Volume | 82,06,773 | Avg Vol 1Wk | 1,05,43,713 |
| Low price | 316 ₹ | High price | 414 ₹ | PEG Ratio | 2.64 | Debt to equity | 1.11 |
| 52w Index | 84.6 % | Qtr Profit Var | 5.85 % | EPS | 20.8 ₹ | Industry PE | 31.0 |
📈 Chart & Trend: NTPC is trading above its 50 DMA (381 ₹) and 200 DMA (357 ₹), confirming strong bullish momentum. RSI at 58.3 reflects healthy momentum without being overbought, while MACD at 7.84 shows a strong bullish crossover. Bollinger Bands are moderately expanded, suggesting active volatility with potential continuation of trend.
🔎 Momentum Signals: Short-term momentum remains positive. Strong support lies at 390–394 ₹, while resistance is seen at 410–414 ₹. Entry zone: 390–394 ₹. Exit zone: 410–414 ₹. A breakout above 414 ₹ could extend toward 420–425 ₹.
📊 Volume Trends: Current volume (82 lakh) is below the 1-week average (1.05 Cr.), indicating reduced participation. Sustained higher volumes will be needed to confirm bullish continuation.
Positive
- Trading above both 50 DMA and 200 DMA confirms bullish strength.
- Dividend yield of 2.09% provides steady shareholder returns.
- EPS of 20.8 ₹ supports valuation comfort.
- FII holdings increased (+0.30%), reflecting foreign investor confidence.
- Quarterly PAT improved from 4,653 Cr. to 4,987 Cr. (+5.85%).
Limitation
- High debt-to-equity ratio (1.11) indicates leveraged operations.
- PEG ratio of 2.64 suggests valuations may be stretched relative to growth.
- Volume below average signals weaker short-term participation.
Company Negative News
- DII holdings decreased (−0.06%), showing weaker domestic sentiment.
- High leverage raises concerns about long-term sustainability.
Company Positive News
- Quarterly PAT growth (+5.85%) highlights earnings resilience.
- Price trading near 52-week high (84.6% index), confirming strong momentum.
Industry
- Industry PE at 31.0 highlights NTPC trades at a discount (P/E 19.2).
- Power sector outlook remains cyclical but supported by infrastructure demand and energy growth.
Conclusion
⚖️ NTPC is trending upward with strong technical signals supported by price above averages, resilient earnings, and foreign inflows. Entry near 390–394 ₹ offers favorable risk-reward, while resistance lies at 410–414 ₹. Overvaluation risks from leverage and PEG ratio remain, but a breakout above 414 ₹ with strong volumes could trigger momentum toward 420–425 ₹.