NSE NTPC stay strong in any market weakness, TP 190 with calls

kunal_finner Updated   
  • As nifty is expected to go below 17300 on March 13 Market opening - NTPC could be a winner
  • Close to life highs, very strong buying / switching from high beta stocks
  • IV is very low (14%) and the call sellers could panic when the stock goes above 183 (life high) - this has been tested once already
  • Keep stop at 172 - which is the logical resistance and expect to see 190 within the month. Buying calls (very cheap) is the right way to trade this
Trade active:
Massive selling in market today but NTPC held relatively well. Only worry is if Nifty goes below 16800 in next few days - then NTPC will also go
However if there is a sharp bounce in Nifty - could get a quick exit in NTPC above 185 levels. Continue to hold with hope
Hopefully bounces with Nifty to the 182 plus levels today. However given that Nifty is still weak - it maybe a temporary reprive
175 at close with most of the selling in the last 30 minutes. This was a reversal from cap goods to banks and i dont expect this to last this week. That being said, keep stop at 172.
On weekly basis it still looks very good (right chart). But there maybe pain in the short term given whats happening with Nifty

Best advice ever - Cut your position size by half.

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