NTPCGREEN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 2.6

📊 Chart Patterns: NTPC Green is trading at 89.9 ₹, well below its 52-week high (138 ₹). The chart shows a clear downtrend with weak attempts to recover.

📈 Moving Averages: Current price is below both DMA 50 (95.9 ₹) and DMA 200 (103 ₹), confirming bearish sentiment.

📉 RSI: At 26.0, RSI is in oversold territory, suggesting potential for a short-term rebound but overall weakness.

📉 MACD: Negative (-2.09), showing bearish crossover and continuation of downward momentum.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible volatility compression.

📊 Volume Trends: Current volume (24.2 lakh) is slightly above average weekly volume (23.4 lakh), showing increased activity but mostly on the selling side.

📍 Momentum Signals: Short-term momentum is bearish. Oversold RSI may trigger a technical bounce, but trend remains weak.

🎯 Entry Zone: 85–90 ₹ (near support). Suitable only for speculative rebound trades.

🎯 Exit Zone: 95–100 ₹ (near 50 DMA resistance). Strong resistance at 103 ₹ (200 DMA).

🔎 Trend Status: The stock is reversing downward from highs and currently in a bearish phase with weak consolidation attempts.

Positive

• Market cap of 75,753 Cr. provides scale and stability.
• Debt-to-equity ratio at 0.42 is moderate.
• Industry PE (26.7) is much lower than NTPC Green’s, showing potential if earnings improve.

Limitation

• High P/E (139) indicates overvaluation relative to earnings.
• Weak ROCE (6.42%) and ROE (3.95%).
• No dividend yield (0.00%), reducing investor appeal.
• Price trading below both 50 DMA and 200 DMA.

Company Negative News

• PAT declined sharply from 165 Cr. to 86 Cr.
• FII holdings decreased (-0.06%) and DII holdings decreased (-0.03%).
• Stock corrected from 138 ₹ to 89.9 ₹.

Company Positive News

• Quarterly profit variation shows improvement (+34.8%) compared to prior year base.
• Moderate debt-to-equity ratio (0.42) supports balance sheet stability.

Industry

• Industry PE is 26.7, far below NTPC Green’s 139, highlighting valuation concerns.
• Renewable energy sector has strong long-term growth potential with government support.

Conclusion

⚠️ NTPC Green is in a bearish trend, trading below key moving averages with oversold RSI. Fundamentals show weak profitability and high valuation, limiting upside potential. Short-term traders may attempt rebound trades near 85–90 ₹ with exits around 95–100 ₹. Long-term investors should wait for earnings improvement and a breakout above 200 DMA before considering entry.