Top buzzing stock: NTPC Ltd

The stock of NTPC is extremely bullish and has soared over 5% in the initial hours of Monday.

NTPC Limited is engaged in the generation of electricity and sale of bulk power to state power utilities. The stock is in focus due to its strong uptrend recently.  

It is currently the top gainer amongst the Nifty stocks and has hit a fresh 52-week high of Rs 163.15 today. The stock broke out from its short-term resistance level of Rs 156 and has surged strongly since then. In April, the stock gained nearly 20% and recorded an above-average volume during this period. Today’s volume was found to be greater than the 10-day, 30-day and 50-day average volume. Moreover, a rise in volume was recorded for the third consecutive day and this shows the willingness to buy the stock. 

Along with its strong price structure, several technical parameters point towards the bullish nature of the stock. The 14-period daily RSI has crossed the 80-mark and shows extreme bullishness. Interestingly, the RSI and price, both have crossed above their prior swing high, which is a strong sign of bullishness. The +DMI is well above the -DMI while the ADX indicates a positive uptrend for the stock. The On Balance Volume (OBV) shows a strong strength from the volume’s perspective while the Elder Impulse system continues to signal buy.  

Apart from its short-term bullishness, the stock has also performed well in the past months. On a YTD basis, the stock has generated about 30% returns and has outperformed the broader market and most of its peers. Considering its strong price action, bullish technical parameters and recent performance, we expect the stock to remain bullish and scale higher levels in times to come. It has the potential to gain another 5-10% in the short term and also presents a good opportunity for swing trading. Short-term traders can expect decent gains from this stock as indicated by the technical analysis.  

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