NTPC Shares (NSE:NTPC) Make A Golden Cross: Consolidation Hinting at Breakout?

NTPC Limited shares (NSE:NTPC) are displaying signs of a potential upward trend, marked by a golden cross formation, where the 50 day moving average crosses above the 200 day. After a period of trading within a narrow range, the stock's technical indicators suggest it may be poised for a significant move, but we would want to see further confirmation.

Year-to-date, NTPC shares have gained a modest 3.09%, yet the gain itself represents a turnaround when compared to the 12-month performance, where the stock remained 17.67% lower than this time last year. The recent consolidation phase following a strong multi-year run could be nearing its end, potentially setting the stage for a new rally, yet the recent performance doesn't exactly scream bullish breakout.

NTPC's strategic shift towards renewable energy is a key factor influencing market sentiment. The company has announced substantial investments in this sector, including a ₹2 trillion plan to develop up to 20 gigawatts of renewable energy capacity in Madhya Pradesh by February 2025. This aligns with India's ambitious goal of achieving 500 GW of clean energy by 2030. Further bolstering its green credentials, NTPC Renewable Energy Limited secured a contract in August 2025 to supply 70,000 metric tonnes of green ammonia annually.

The company's financial performance provides additional context. In Q4 FY2024, NTPC reported a 22.6% sequential increase in consolidated net profit, reaching ₹5,778 crore. Revenue also saw a 6% rise to ₹43,903.7 crore. However, operating margins contracted to 25.6% from 28.9% in the previous quarter.

Meanwhile, NTPC Green Energy reported a nearly threefold increase in Q4 profit, driven by higher power sales and interest income from IPO proceeds.

NTPC is also exploring the development of Small Modular Reactors (SMRs) to replace aging coal-fired plants. This initiative signals a commitment to cleaner energy sources and technological innovation.

Analysts will be monitoring NTPC's transition towards cleaner energy, its ability to maintain profitability amid fluctuating market conditions. The golden cross formation, combined with strategic initiatives and financial performance, suggests a potential upward trajectory for NTPC stock. However, this signal alone should only form part of a wider analysis. There may be hints, but now we need to see stronger signs of a move, and look to potential breaks of resistance for some confirmation.