Shares of National Thermal Power Corporation (NTPC) recently broke through a key resistance level, crossing ₹417 per share during Wednesday’s trading session. By the end of the day, NTPC stock was priced at around ₹436, but it fell slightly on Thursday, now trading at around ₹430 per share. This price dip has caught the attention of market experts, who believe it presents a good buying opportunity.
Market analysts highlight that NTPC operates in the power sector, which is expected to see continued growth due to increasing demand. NTPC has been ramping up its investments in expansion projects, a key move as India aims to become the world’s third-largest economy. Experts advise current shareholders to consider adding more NTPC stock to their portfolios, and those who are not yet invested should view this recent drop as a chance to enter the market.
Sagar Shetty, a research analyst at StoxBox, said NTPC is well-positioned to benefit from India’s growing energy needs. The company currently has 76 gigawatts (GW) of power generation capacity, and it plans to expand to 130 GW by 2032, with a focus on renewable energy. This shift to cleaner, faster-to-build energy sources will likely boost the company’s growth.
Shetty also mentioned that NTPC operates under a regulated tariff model, which lowers risk, and the company’s financial and operational performance has been improving. With a more stable coal supply and better payment reliability from power distribution companies, NTPC’s future looks bright. The planned IPO of its green energy division, NTPC Green Energy, could also enhance shareholder returns.
In terms of technical analysis, Shiju Vasu Koothupalakkal, Senior Manager at Prabhudas Lilladher, noted that NTPC shares bounced back strongly from a key support level of ₹395. He observed a breakout from a descending channel at ₹417, which is a positive sign for future price movements. With rising volume and an improving Relative Strength Index (RSI), he expects the stock to reach targets of ₹446 and ₹480 in the near future, with a recommended stop loss at ₹415.
In summary, experts see this current dip as an opportunity to buy NTPC stock, with a positive outlook for future growth.
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