Bajaj Auto, Tata Comm: Trading strategies for stocks turning ex-dividend

Shares of Bajaj Auto, Tata Communications, Bank of Baroda, Glaxosmithkline Pharmaceuticals, and Bajaj Finserv will be in the limelight amid turning ex-dividend this week. 

The overall trend in these stocks remain positive, however crucial hurdles need to be conquered to rally further. On Monday, shares of Tata Communications, Glaxosmithkline Pharmaceuticals and Bajaj Finserv traded in green, while Bank of Baroda and Bajaj Auto witnessed a sluggish sentiment. 

Bajaj-Auto and Tata Communications remains in top lists, as they decisively trade near their all-time high levels. 

Here’s the technical outlook for selective stocks amid their ex-dividend date this week:-

Bajaj Auto Ltd (BAJAJ-AUTO)

Outlook: Trades beneath 21-EMA

Shares of Bajaj Auto have violated the 21-exponential moving average (EMA) post March of this year, implying weakness, and if it fails to rebound over the same, the trend may deteriorate towards Rs 4,450 level. 

A decisive close beneath this support could mean downside to Rs 4,200, its 100-day moving average (DMA), as per the daily chart. Sustainability over Rs 4,700 may spark upside towards a new all-time high. CLICK HERE FOR THE CHART

Tata Communications Ltd (TATACOMM)

Likely target: Rs 1,800

Upside potential: 10%

The recent trend has been very lucrative for shares of Tata Communications, as the counter soared from Rs 1,270 to an all-time high of Rs 1,674 in the last 15-20 sessions. The stock may take some respite following a steep rally and then could resume the next leg of upside, as per the daily chart.

Immediate support falls at Rs 1,500 level, its 21-EMA, as per the daily chart. A breakout over Rs 1,650 would mean a positive rally to the Rs 1,800-mark. CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA)

Likely target: Rs 220

Upside potential: 10%

The stock has claimed a new 52-week in the last week, becoming one of the strongest stocks in banking sector. Immediate support exists at Rs 186 and until Rs 175, its crucial mark is taken out, the trend is projected to endure positive bias. 

On the upper end, the stock could head in the direction of Rs 220 level, as per the chart set-up. Overall trend remains optimistic, with every decline anticipated to add positions for long-term outlook. CLICK HERE FOR THE CHART

Glaxosmithkline Pharmaceuticals Ltd (GLAXO)

Outlook: Breakout over the 200-DMA

The stock requires to cross the 200-weekly moving average (WMA) set at Rs 1,436-mark to embark a new trend. A bullish bias might see interest from market participants if the stock reveals resilience over the 200-WMA.

The optimistic bias may then head towards 1,700, which is its next key barrier. As of now, Rs 1,300 remains a key support. CLICK HERE FOR THE CHART

Bajaj Finserv Ltd (BAJAJFINSV)

Outlook: Needs to sustain over the 200-DMA

While shares of Bajaj Finserv managed to cross the 200-DMA set at Rs 1,498 in the recent sessions, the stock needs to display robust stability over the same. Only upon then, the price action could offer a rally in the direction of Rs 1,580 to Rs 1,600 level, its next key hurdle range. 

Immediate support exists at Rs 1,450-mark, as per the daily chart. The stock must restore the same momentum that it showed when traded in the overbought category of RSI. CLICK HERE FOR THE CHART