NHPC Ltd. Vs. Indian Stock Market

NHPC Ltd. Vs. Indian Stock Market

The Indian Stock market has been falling for the last 5-6 sessions but NHPC Ltd. Stands tall without buzzing a bit. Being the buzz around the disinvestment by the government at mostly discounted price ( on majority of the PSUs), the stock should be falling or flowing with the Indian share market but it is going against the tide and that’s what makes me suspicious about the resistance show my NHPC ltd Share price.

Last month the Share price of NHPC ltd. was around Rs.28 when it fell down drastically due to some by some Mumbai Based Investment Firms (as per news collected online). So I am sniffing something similar this time around as well. I don’t know if it is my imagination or so but the players are trying hard to keep NHPC Ltd. above Rs.21.50.

May be I am wrong and may be investors are buying it but the way NHPC Ltd. Is trading for the last 5-10 trading sessions, I would advise investors to stay away from the share for now. Traders can make a feast of it by taking the risk as a big swing either way can reap good rewards.  I am betting on the share price going below Rs.20 by the end of April and so holding on to my Put (Strike price Rs.20) at 30p. The way the stock is behaving right now, it would be hard for the Put to go above 30p but if my forecast is correct, NHPC will be moving sharply sooner or later and if I am lucky it will be a free fall for the stock.

The Indian stock market is bearish for quite some time so the chances of the stock moving against the tide for a long time are slim. So traders can take the risk and short the share NHPC ltd for good returns.