Newton's First Law states that an object will remain at rest or in uniform motion in a straight line unless acted upon by an external force.
NTPC was in state of rest for long long long time till huge buying (external force) today lifted the stock up. Now, the stock should remain in state of motion.
Here's NTPC stock daily chart
As you can see in the chart above - NTPC stock did nothing for long time, faced resistance at 150 and traded quietly below it. The trading volumes were not great but today's trading seems to have changed everything. The stock got a big lift as it broke past 150.
The move today should trigger a new run in the stock. Will that happen? We will wait and see. If stock over next few days settle below 148 - it will be big disappointment.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers