NTPC: Buy call option to bet on bounce back
The long and medium outlooks for NTPC (₹117.35) appear negative, as long as the stock rules below ₹145. In the short-term, the stock may show some resilient. While the immediate support appears at ₹113, a close below ₹105 has the potential to trigger a fresh fall on the stock. On the other hand, it finds immediate resistance at ₹123 and the next one at ₹135. We expect the stock to move in a range with an upward bias, given the current fall.
F&O pointers: The NTPC November futures added open interest on Friday despite a decline in the share price, signalling short-build up. Option trading indicates that NTPC could move in a range of ₹115-120.
