NTPC Call Option Purchase Recommended via F&O Strategy
NTPC: A Cautious Long-Term Buy Amid Near-Term Uncertainty
Published on August 2, 2025
In the ever-evolving world of stock market investments, the energy sector continues to attract attention, and NTPC Ltd is no exception. As of early August 2025, the recommended trading strategy for NTPC, considering technical analysis and F&O positions, leans towards a cautious long-term buy with careful attention to near-term price movements.
Currently, NTPC is trading at around Rs. 332, with a price-to-earnings (PE) ratio of 13.44 and price-to-book (PB) ratio of 0.57. These valuation metrics indicate relatively attractive valuation compared to its 52-week high of Rs. 448 and low of Rs. 292.
Analysts maintain a "Buy" rating for NTPC over the long term, with price targets averaging around Rs. 418 but ranging between Rs. 320 and Rs. 490. This bullish sentiment is tempered by expectations of slower revenue growth (~4.9% CAGR through 2026) compared to its historical 12% growth rate and industry peers growing at about 15%.
Historically, NTPC has delivered positive returns in August in 9 out of the last 17 years, with average positive changes observed, although with some downside risk from past years. The average change in August is modestly positive (about 0.7%).
Given the market context, technical and F&O sentiment suggests a cautious trading approach. While there is no direct F&O position data for NTPC specifically, the overall market conditions indicate cautious trading with near-term positioning playing a major role amid a losing streak in the broader market. Such conditions suggest using technical support and resistance levels, monitoring open interest and price action, and possibly scaling into positions rather than aggressive bets.
In terms of technical levels, the immediate support levels for NTPC are at Rs. 311 and Rs. 287. The nearest resistance levels are at Rs. 344 and Rs. 363. A close above Rs. 363 could change the outlook for NTPC to positive, while a close below Rs. 287 could change the outlook to negative.
Asian Paints has surged sharply as expected, providing an opportunity for traders to book profits. However, this surge does not directly impact the outlook for NTPC.
In summary, NTPC is positioned as a fundamentally sound, reasonably valued stock with long-term potential, but near-term trades should be cautious and technically guided due to sector growth slowing and uncertain market momentum. As always, investors should remember that there is a risk of loss in trading.
[1] Historical NTPC Performance [2] NTPC Valuation Metrics [3] NTPC Earnings Outlook [4] Market Context and F&O Sentiment
- Investors considering a long-term subscription to the stock market may find NTPC Ltd, a company in the energy sector, an attractive option given its reasonable valuation as of August 2025.
- As of August 2, 2025, NTPC is trading at around Rs. 332, with a price-to-earnings (PE) ratio of 13.44 and a price-to-book (PB) ratio of 0.57, which are relatively attractive compared to its historical price range.
- Despite analysts maintaining a long-term 'Buy' rating for NTPC, the slower revenue growth, at around 4.9% CAGR through 2026, compared to its historical 12% growth rate and industry peers, suggests a need for careful analysis and trading.
- The market context and F&O sentiment suggest a cautious trading approach for NTPC, with near-term positioning playing a significant role amid uncertain market momentum. Monitoring open interest, price action, and using technical support and resistance levels is advisable.
