Information about NTPC

iceicebaby · #1 27th May 2008, 08:55 PM

Hi I would like to have some information regarding when to buy NTPC shares,
I intend to buy a Lot in June and hold it for a month.
So please give me ur valued view regarding how much of downside is still left and what will be the right price to enter.

Regards

Dev

moneygurukul · #2 28th May 2008, 10:29 AM

Quote:

Originally Posted by iceicebaby

Hi I would like to have some information regarding when to buy NTPC shares,
I intend to buy a Lot in June and hold it for a month.
So please give me ur valued view regarding how much of downside is still left and what will be the right price to enter.

Regards

Dev

NTPC was making a Descending triangle on Daily Chart which was broken on the down side. Hence, the best strategy should be to short- sell it @ 182.
However, if one is interested in going long only, there are two options for them.

One is to take entry if breakout is false. In that case, one should wait for price to close above 182 and take entry above the high of the bar closing inside the support level of 182 with a Stop-loss at current bottom of 172. (Keep an Eye on Volume here, volume must be high).There should be one more stop loss level which should be applied on closing basis. If after entry, NTPC closes below 182, then the low of the bar closing below 182 should be the stop. (It's to avoid getting trapped into a pullback rally).

A better and low-risk entry will be to buy around 160 on Weekly Trendline retest with a marginal Stop-loss.

iceicebaby · #3 28th May 2008, 06:13 PM

Thanks a lot Mr Moneygurukul, what I understand is that there is further downside left in NTPC and the chances of it breaking the 170 mark is real and beyond it, it may further go down to 160.
One more point I make out of it is that even if it goes to 182 there are real chances of it coming down.
Please comment on these two observations.

Thanking you again

Dev

moneygurukul · #4 29th May 2008, 11:44 AM

[quote=iceicebaby;182039]Thanks a lot Mr Moneygurukul, what I understand is that there is further downside left in NTPC and the chances of it breaking the 170 mark is real and beyond it, it may further go down to 160.[quote]

Always a pleasure, Dev!

Well, the trend is downwards and hence the chances of it going down can not be denied. The stock may go even below 160 but as the weekly trendline is coming over there, we may try to pick the bottoms with a closing stop below the trendline.

Quote:

One more point I make out of it is that even if it goes to 182 there are real chances of it coming down.
Please comment on these two observations.

Thanking you again

Dev

Yes there is a chance of fresh selling on a pullback to 182. Volume would be the guiding factor. If the pullback to 182 is with low volume, we should assume it to be a pullback only and hence should be cautious about taking a long entry. However, a high volume for rally towards 182 would mean that it's fresh buying and hence there should be more conviction in going long.

iceicebaby · #5 29th May 2008, 07:39 PM

National Thermal Power Corporation Ltd (NTPC) has informed BSE that the Board of Directors of the Company at its meeting held on May 29, 2008, inter alia, have recommended final dividend @ 8% of paid up equity share capital in addition to the interim dividend paid @ 27% of paid up equity share capital in February 2008.

NTPC Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2008 as follows: Net Sales of Rs. 1074360 lacs for quarter ending on 31-MAR-2008 against Rs. 886030 lacs for the quarter ending on 31-MAR-2007. Net Profit / (Loss) of Rs. 133950 lacs for the quarter ending on 31-MAR-2008 against Rs. 173470 lacs for the quarter ending on 31-MAR-2007

Why does a company that has made profit and is giving dividend going down and forming new lows?

moneygurukul · #6 30th May 2008, 07:15 PM

Quote:

Originally Posted by iceicebaby

National Thermal Power Corporation Ltd (NTPC) has informed BSE that the Board of Directors of the Company at its meeting held on May 29, 2008, inter alia, have recommended final dividend @ 8% of paid up equity share capital in addition to the interim dividend paid @ 27% of paid up equity share capital in February 2008.

NTPC Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2008 as follows: Net Sales of Rs. 1074360 lacs for quarter ending on 31-MAR-2008 against Rs. 886030 lacs for the quarter ending on 31-MAR-2007. Net Profit / (Loss) of Rs. 133950 lacs for the quarter ending on 31-MAR-2008 against Rs. 173470 lacs for the quarter ending on 31-MAR-2007

Why does a company that has made profit and is giving dividend going down and forming new lows?

If one is looking for a fundamental answer to it, then a stock will move towards its fair value. Even if a company which is making profit and paying dividend may be overvalued on fundamentals (I am not stating that NTPC is over-valued on fundamental analysis;even fundamental analysis is highly subjective).

Otherwise, it's always a matter of demand, supply & equilibrium of price.

iceicebaby · #7 30th May 2008, 10:14 PM

MMMMM that's interesting, I never thought from that angle, guess it is cooling off now.

Thanks for the education

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