NTPC is in the news because the government plans to sell approximately 5% stake in it.
Apart form this news there is yet another news that can give impetus to this stock and that’s the recent discussion on power pact between
http://www.asianage.com/presentation/leftnavigation/news/india/2-countries-discuss-power-pact.aspx
Having done with the news let us see what the charts below reveal;
Above is the weekly chart and you can see what looks like a mother of all breakouts (damn I guess got excited with that mother of all dialogue!). NTPC has formed a huge base on the weekly and has attempted a breakout recently. Any weekly close above 235 is taking this too immediately 250/55 and then the SKIES are open from there onwards. Personally I wouldn’t want to see a close below 220 on this one! Now let’s move to the daily chart below;
A clear Flag… Needs to break above 235. Momentum precedes price they say… with the indicators making new highs will the price follow? Only two ways to ride this one either buy on break of 235 or buy the retracement to 220/25!
If POWER is your play then NTPC is definitely GAME!
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