F&O Stock Strategy: How to trade NTPC and LTIM
stocks and strong support from Reliance Industries (RIL), which was one of the top contributors, just behind Infosys.
The 30-stock S&P BSE Sensex reached a new high of 79,396.03 before closing at 79,278.78, up by 604.53 points or 0.77%. Meanwhile, the broader Nifty crossed the 24,000 mark for the first time, hitting a record high of 24,087.45 before ending the day at 24,044.50, gaining 175.70 points or 0.74%.
Analyst Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research at SBI Securities, suggests how one should trade stocks that were in focus in the previous trading sessions based on derivative and technical data:
NTPC Rebounds Strongly from Support Zone
The stock of NTPC Ltd has marked high of 376 on June 13 and thereafter witnessed minor throwback along with low volume. The throwback was halted near the 50-day EMA level. The stock has formed a strong base near the support zone and witnessed a smart rebound in Thursday's trading session. The reversal from the support zone was supported by robust volume.
Currently, it is trading above its short and long-term moving averages. These averages are in a rising trajectory and they are in the desired sequence, which suggests the trend is strong. The daily RSI has given a bullish crossover and it is on a rising trajectory. The momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive.
The derivative data is also supporting the overall bullish chart structure. The July future has surged
