NTPC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | NTPC | Market Cap | 3,34,480 Cr. | Current Price | 345 ₹ | High / Low | 371 ₹ |
| Stock P/E | 16.6 | Book Value | 173 ₹ | Dividend Yield | 2.42 % | ROCE | 12.2 % |
| ROE | 13.6 % | Face Value | 10.0 ₹ | DMA 50 | 337 ₹ | DMA 200 | 337 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.26 % | PAT Qtr | 4,987 Cr. | PAT Prev Qtr | 4,653 Cr. |
| RSI | 53.1 | MACD | 4.66 | Volume | 1,47,15,389 | Avg Vol 1Wk | 1,74,43,063 |
| Low price | 293 ₹ | High price | 371 ₹ | PEG Ratio | 2.28 | Debt to equity | 1.11 |
| 52w Index | 66.1 % | Qtr Profit Var | 5.85 % | EPS | 20.8 ₹ | Industry PE | 25.6 |
📊 Chart & Trend Analysis:
NTPC is trading at ₹345, above both its 50 DMA (₹337) and 200 DMA (₹337), indicating bullish momentum. RSI at 53.1 suggests neutral-to-positive strength, not overbought. MACD at 4.66 shows a positive crossover, confirming upward bias. Bollinger Bands place price near the mid-to-upper range, reflecting steady bullish sentiment. Current volume (1.47 Cr.) is slightly below the 1-week average (1.74 Cr.), showing moderate participation.
📈 Momentum Signals:
- RSI neutral, leaning bullish.
- MACD positive crossover confirms upward momentum.
- Price above both 50 & 200 DMA supports bullish trend continuation.
- Volume slightly below average, indicating steady but not aggressive buying.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹340 – ₹345 (near DMA support).
- Exit Zone: ₹365 – ₹370 (resistance near recent highs).
- Stop Loss: ₹330 (below DMA support).
📌 Trend Status: The stock is trending upward with bullish bias, supported by moving averages and MACD strength.
Positive
- Strong EPS of ₹20.8 reflects solid earnings base.
- Dividend yield of 2.42% provides steady income.
- Quarterly PAT improved to ₹4,987 Cr. from ₹4,653 Cr., showing earnings growth (+5.85%).
- DII holding increased (+0.26%), reflecting domestic institutional support.
Limitation
- Debt-to-equity ratio of 1.11 indicates high leverage risk.
- ROCE (12.2%) and ROE (13.6%) are modest compared to peers.
- PEG ratio of 2.28 suggests growth is relatively expensive.
Company Negative News
- FII holding decreased (-0.16%), showing reduced foreign investor confidence.
- High leverage may limit flexibility in volatile interest rate environments.
Company Positive News
- Quarterly profit growth of 5.85% signals operational improvement.
- Dividend yield remains attractive compared to peers.
- DII support increased, reflecting confidence from domestic institutions.
Industry
- Industry P/E at 25.6 is higher than NTPC’s P/E (16.6), suggesting undervaluation relative to peers.
- Power sector remains resilient, supported by government initiatives and rising demand for energy.
Conclusion
⚖️ NTPC is trending upward with bullish signals from MACD and price action above key moving averages. Fundamentals remain strong with consistent profit growth, attractive dividend yield, and undervaluation compared to industry peers. Short-term traders may consider entry near ₹340–₹345 with exits around ₹365–₹370, while long-term investors can benefit from steady earnings and sectoral resilience, though leverage risks should be monitored.