F&O Strategy: NTPC Call Option Suggests Narrow Trading Range

NTPC's stock (₹330.90) exhibits a neutral outlook, with immediate support at ₹311 and ₹287. A breach below ₹287 WOULD turn sentiment negative, while surpassing ₹363 could shift it to positive. The stock is expected to oscillate between ₹300 and ₹370 in the near term.

August futures closed at ₹331.60, slightly above the spot price, with a 95% rollover rate—exceeding the three-month average. Option positioning hints at a potential trading range of ₹290-370. Traders are advised to consider buying the 335-call option, priced at ₹5.25, with a market lot of 1,500 shares. The trade carries a maximum loss of ₹7,875 if NTPC fails to cross ₹335 by expiry. Break-even stands at ₹340.25, with targets and stop-loss set at ₹7.50 and ₹2, respectively.

Asian Paints' recent surge serves as a reminder to lock in profits opportunistically. This analysis is purely technical, leveraging F&O data and price action.