After a strong rally in recent times, the outlook turned positive for NTPC (₹372.95). A close above the resistance at ₹395 can trigger fresh rally that can take the price to new peaks.

Nearest support levels are at ₹358 and ₹342. A close below the latter will negate the current short-term bullish trend. However, as long as NTPC rules above ₹316, the long-term bullish structure will be valid.

F&O pointers: NTPC Feb futures (expiring on Tuesday) and Mar futures closed at ₹371.70 and ₹374.15 respectively against the spot price of ₹372.95. Open interest saw a steady build up along with a rise in share price. 

Rollover to March contract stood at a healthy 55 per cent. Option positioning (March series) indicates that the stock can move between ₹370 and ₹390.

Strategy: Consider buying 372.50-call of March expiry that closed with a premium of ₹11 on Friday. As the market lot is 1,500 shares, this strategy would cost ₹16,500.

Hold the position with initial stop-loss at ₹6.5. Shift it to ₹10, if NTPC opens on a positive note on Monday. Target can be ₹18. Use the stop-loss judiciously to protect both capital and profits.

If NTPC opens above ₹378 or below ₹362 on Monday, traders can stay away from this trade. Market will remain volatile and so, this strategy suits participants who understand the risk involved in buying options.

Follow-up: Though the stock of TVS Motor displayed some resilience on the first three days of last week and provided some profit opportunities, Thursday’s sharp fall would have triggered stop-loss.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.

Published on February 21, 2026