The long and medium-term outlook for NTPC (₹97.85) will be negative, as long as the stock rules below ₹145. After the recent bounce back from ₹73, the short-term outlook had turned positive for NTPC. While the immediate resistance appears at ₹104, NTPC finds a major resistance at ₹118. On the other hand, it finds an immediate support ₹92.90, a conclusive close below ₹86.5 will trigger a fresh fall on the stock. We expect the stock to move in a narrow range with a positive bias.
F&O pointers: The NTPC June futures at ₹96.8 still rule in a discount with respect to the spot close of of ₹97.85. This signals, existence of strong short positions in the counter.
