1. NTPC Limited
| Counter | NTPC LTP 182.70 |
| Call | Buy on dip |
| Target 1 | 192 |
| Target 2 | 207 |
| Stop Loss | 173 or 170 levels |
| Time Horizon | 3-4 weeks |
| Notes | Buy-on-dip towards 180 & 175 |
NTPC is India’s largest power utility with an installed capacity of 72,304 MW (including JVs), plans to become a 130 GW company by 2032. Established in 1975, NTPC aims to be the world’s largest and best power major. The company is committed to generating reliable power at competitive prices in a sustainable manner by optimising the use of multiple energy sources with innovative eco-friendly technologies.
| Previous Close | 182.1 | TTM EPS | 17.4 |
| 52 Week High | 184.4 | TTM PE | 10.5 |
| 52 Week Low | 134.9 | P/B | 1.2 |
| Sector PE | 12.7 | Mkt Cap (Rs. Cr.) | 177,255 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- NTPC’s stock price has stayed within a range of 160 to 185 since September 2022.
- Last week, the stock’s weekly closing price went above 183, which is the highest it’s been in the last nine months indicating an up move.
- If the stock price breaks out of its current range, it could try to reach an immediate target of 192. After that, the next significant goal could be around 207
- Traders can consider buying on dips towards 180 or lower. Strict stop loss need to be maintained below 173 or even 170 at the end of a week, depending on how much risk they are willing to take. This could help them prepare for potential price increases in the upcoming weeks.
Open Interest Study
(Source: Fisdom research)
- Based on a study of the open interest option chain, it seems like NTPC has a strong resistance level at around 185 due to a build-up of call options.
- The stock may initially experience a “pause” or slight profit booking around these levels.
- If NTPC can maintain a price above 185, there’s a chance of more people buying the stock or covering their short positions, which could push the price even higher
- Initially take exposure to hedged positions and trade longs as per risk-appetite.
F&O Strategy
| Scrip | NTPC LTP 182.7 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Potential break out on cards |
| Max Reward Expected | ₹33,630 |
| Max Risk Expected | ₹23,370 |
| Action | Scrip | QTY | IP | LTP |
| BUY | JUN NTPC 180 CE | 5700 | 5.7 | 5.7 |
| SELL | JUN NTPC 190 CE | 5700 | 1.6 | 1.6 |
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2. JSW Steel Limited
| Counter | JSWSTEEL LTP 748.30 |
| Call | Buy on dip |
| Target 1 | 785 |
| Target 2 | 855 |
| Stop Loss | 700 or 680 |
| Time Horizon | 4-5 weeks |
| Notes | Buy-On-Dip towards 720 & 700 |
The flagship company of JSW Group, JSW Steel is one of India’s leading integrated steel manufacturers with a capacity of 18 MTPA. It is one of the fastest growing companies in India with a footprint in over 100 countries. With state-of-the-art manufacturing facilities located in Karnataka, Tamil Nadu and Maharashtra, it is recognized for its innovation and quality.
| Previous Close | 751.5 | TTM EPS | 17.1 |
| 52 Week High | 783.5 | TTM PE | 43.7 |
| 52 Week Low | 536.1 | P/B | 2.8 |
| Sector PE | 15.9 | Mkt Cap (Rs. Cr.) | 180,928 |
(Source: Moneycontrol, BSE, Fisdom Research)
Technical Outlook
(Source: Fisdom research)
- Since May 2023, JSWSteel has been seeing profit booking whenever the price gets close to or goes over 740.
- Last week, the stock ended strong, closing above 740, showing an almost 6% increase.
- The stock’s overall trend is bullish as it keeps making higher lows and higher highs, suggesting bullish bias.
- Based on the stock’s current price, it’s at a very important turning point, often referred to as a “Make-Or-Break” point.
- Based on technical analysis and market indicators, there’s a high chance that the stock’s price might break out to the higher side in the coming weeks. This could potentially see it reaching 855, and then major points of 920 or 1070 over the next few months. As long as the price stays above 680, this upward trend is expected to continue.
Open Interest
(Source: Fisdom research)
- Based on the study of the June Option Chain and Open Interest Build-up, JSWSTEEL has strong support in the 720-700 range, where most investors are buying put options.
- On the higher side, the stock has a lot of call option purchases between prices of 750 to 800, suggesting a possible pause cum profit booking when the price moves towards these levels in the next few days.
- The recommendation is to buy when the price dips above the 720-700 range, with a potential to reach up to 800 initially.
F&O Strategy
| Scrip | JSWSTEEL LTP 748.30 |
| Risk | Moderate |
| Ratio | 1:1 |
| Bias | Range to positive |
| Max Reward Expected | ₹42,030 |
| Max Risk Expected | ₹29,970 |
| Action | Scrip | QTY | IP | LTP |
| BUY | JSWSTEEL JUN 740 CE | 1800 | 24.35 | 24.35 |
| SELL | JSWSTEEL JUN 780 CE | 1800 | 7.7 | 7.7 |
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