Shares of NTPC Green Energy Limited jumped 10% on January 14, breaking a three-day losing streak that saw the stock fall to its 52-week low. The stock opened at Rs 110.80 and soon started gaining strength. The 10% upper circuit was hit around 2.30 pm and the stock continued to trade at upper circuit till the closing bell. For the moment, traders can consider 110 as a major support for the stock with Rs 126 as immediate resistance. This sharp rebound also brought the company’s market capitalization back above Rs 1 lakh crore. The renewable energy giant, a wholly-owned subsidiary of NTPC Ltd., has shown resilience through its recent listing journey. With strategic projects like the Bhainsara and Shajapur solar ventures, NTPC Green Energy’s diversification into renewable energy offers growth potential. This article explores the stock’s performance, technical levels, and expert insights for investors.

Stock Performance: A Rollercoaster Journey

Breaking a losing streak: On Tuesday, NTPC Green Energy saw its shares locked in a 10% upper circuit, snapping a three-day losing streak.

52-week low and IPO re-test: The stock hit its 52-week low on Monday, re-testing its IPO price of Rs 108 and making an intraday low of Rs 109. The recent downtrend resulted in a 12% decline over three sessions, wiping out all post-listing gains.

Market cap revival: With Tuesday’s rally, NTPC Green Energy’s market capitalization regained its Rs 1 lakh crore threshold, signaling renewed investor interest.

IPO and Post-Listing Performance

One of the largest IPOs of 2024: NTPC Green Energy’s Rs 10,000 crore IPO was among the largest last year, receiving full subscription.

Early gains lost: After listing at a premium, the stock climbed to a post-listing high of Rs 155 but subsequently surrendered all gains, reflecting market volatility and profit-booking pressures.

Limited upward momentum: Despite Tuesday’s surge, the stock has recorded gains on only two occasions in the last seven trading sessions, underscoring investor caution.

Operational Highlights: Renewable Energy Projects

New solar capacities commissioned: NTPC Renewable Energy Ltd. (NTPC REL), a subsidiary of NTPC Green Energy, has successfully commissioned:

220 MW for the Bhainsara Solar PV project (out of 320 MW capacity).
100 MW for the Shajapur Solar project (out of 220 MW capacity).
Strategic diversification: These projects reinforce NTPC Green Energy’s commitment to expanding its renewable portfolio and reducing dependence on traditional energy sources.

Expert Insights: Medium- and Long-Term Potential

Positive outlook for green energy diversification: Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, highlighted NTPC Green Energy’s diversification into renewables and nuclear energy as a positive driver for medium- to long-term growth.

Advice for investors: Bathini recommends adding the stock on dips, citing its potential for strong performance amid India’s growing renewable energy focus.

Technical Analysis: Support and Resistance Levels

Key technical levels:

Support: Rs 112–120 range.
Resistance: Near-term resistance at Rs 125.
Buying strategy: An analyst suggested, “Traders should only consider buying when the stock decisively breaks above Rs 126.” This breakout could signal a sustained upward trajectory.

Conclusion: A Strategic Player in India’s Green Energy Push

NTPC Green Energy’s performance underscores the volatility of newly listed stocks but also reflects the strategic potential of its renewable energy ventures. With significant solar capacity additions and a focus on diversification, the company is well-positioned for growth. However, investors should remain mindful of technical levels and market conditions to maximize returns.