NTPC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | NTPC | Market Cap | 3,76,522 Cr. | Current Price | 388 ₹ | High / Low | 414 ₹ |
| Stock P/E | 18.6 | Book Value | 173 ₹ | Dividend Yield | 2.15 % | ROCE | 12.2 % |
| ROE | 13.6 % | Face Value | 10.0 ₹ | DMA 50 | 387 ₹ | DMA 200 | 362 ₹ |
| Chg in FII Hold | 0.30 % | Chg in DII Hold | -0.06 % | PAT Qtr | 4,987 Cr. | PAT Prev Qtr | 4,653 Cr. |
| RSI | 46.3 | MACD | 0.21 | Volume | 1,23,19,505 | Avg Vol 1Wk | 89,59,828 |
| Low price | 316 ₹ | High price | 414 ₹ | PEG Ratio | 2.57 | Debt to equity | 1.11 |
| 52w Index | 73.8 % | Qtr Profit Var | 5.85 % | EPS | 20.8 ₹ | Industry PE | 28.7 |
📈 Chart & Trend: NTPC is trading at 388 ₹, right at its 50 DMA (387 ₹) and above its 200 DMA (362 ₹), showing balanced momentum with long-term strength. Support lies at 380–385 ₹, with resistance around 400–410 ₹.
🔎 Momentum Signals: RSI at 46.3 indicates neutral momentum leaning slightly bearish. MACD at 0.21 shows a mild positive crossover. Entry zone: 380–385 ₹. Exit zone: 400–410 ₹.
📊 Volume Trends: Current volume (1.23 Cr.) is above the 1-week average (89.6 Lakh), reflecting strong participation and institutional activity.
📉 Bollinger Bands: Bands are moderately tight, suggesting consolidation with potential breakout attempts.
📌 Trend Status: The stock is consolidating near support levels with mild bullish bias supported by volume strength.
Positive
- Trading above 200 DMA confirms long-term technical strength.
- Dividend yield of 2.15% provides steady shareholder returns.
- Quarterly PAT growth (4,987 Cr. vs 4,653 Cr.) shows earnings resilience.
- EPS of 20.8 ₹ supports profitability.
- FII holdings increased (+0.30%), reflecting foreign investor confidence.
Limitation
- High debt-to-equity ratio (1.11) indicates leveraged operations.
- PEG ratio of 2.57 suggests valuations may be stretched relative to growth.
- RSI below 50 signals weak momentum.
- DII holdings declined (-0.06%), showing reduced domestic support.
Company Negative News
- Concerns over high leverage impacting long-term sustainability.
- Domestic institutional investors reduced exposure.
Company Positive News
- Quarterly profit variation (+5.85%) highlights earnings growth.
- FII inflows reflect foreign institutional confidence.
- Stock remains resilient near support levels with strong volume activity.
Industry
- Industry PE at 28.7 suggests sector is moderately valued compared to NTPC’s lower P/E (18.6), making it attractive on valuation.
- Power sector supported by infrastructure demand and energy growth initiatives.
Conclusion
NTPC is consolidating near support levels with neutral momentum but strong fundamentals. Attractive valuation, dividend yield, and resilient earnings support long-term stability, though leverage and stretched PEG ratio require caution. Best suited for entry near 380–385 ₹ with profit booking around 400–410 ₹.
NTPC is in a consolidating phase with strong fundamentals but leverage risks. To broaden the view, I can extend this into a peer benchmarking analysis or a sector overlay comparison to highlight its positioning against other power sector peers.