NTPC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 3.7

Technical Analysis Summary

• Trend: Reversing from highs with weakening momentum
• Moving Averages: Price (₹337) is slightly below DMA 50 (₹339) and DMA 200 (₹341), indicating short-term pressure
• RSI (46.2): Neutral zone, leaning bearish
• MACD (1.21): Mild bullish crossover, but momentum remains weak
• Bollinger Bands: Price near mid-band, suggesting consolidation with downside risk
• Volume: Above average (2.06 Cr. vs 1.28 Cr.), indicating active participation

Entry & Exit Zones

• Support: ₹325 – ₹330 (recent base and psychological level)
• Resistance: ₹345 – ₹355 (DMA levels and prior swing highs)
• Optimal Entry: ₹330 – ₹335 on pullback with MACD support
• Exit Zone: ₹345 – ₹355 if price struggles near resistance

Positive

• Strong EPS of ₹20.5 and consistent dividend yield of 2.48%
• Low P/E of 16.4 vs industry average of 30.9
• Stable quarterly PAT (₹4,653 Cr.) and positive FII sentiment (+0.31%)
• Price up 35.5% over 52 weeks

Limitation

• Price below both DMA 50 and DMA 200 indicates short-term weakness
• ROCE (12.2%) and ROE (13.6%) are moderate for the sector
• PEG ratio of 2.26 suggests valuation concerns
• High debt-to-equity ratio (1.11) may impact future growth flexibility

Company Negative News

• Flat profit growth and concerns over coal supply and regulatory delays

Company Positive News

• Expansion in renewable energy and green hydrogen initiatives
• Strong government backing and strategic investments in clean energy

Industry

• NTPC operates in the power generation and energy infrastructure sector
• Peers include NHPC, SJVN, and Tata Power

Conclusion

NTPC is currently reversing from its highs with mixed technical indicators and moderate momentum. While fundamentals remain solid and volume is supportive, short-term caution is advised due to resistance at moving averages. Traders may consider entry near ₹330 with targets around ₹355, watching RSI and MACD for confirmation.