NTPC, Gail: How to trade these 5 stocks that turned ex-dividend this week?

As many as 49 stocks turned ex-dividend on the bourses this week. Here's a quick chart check on select five among them.

Amid the ongoing Q3 earnings season, number of companies declared interim dividend for the financial year ending March 2024. Subsequently, the stocks were trading adjusted to the dividend amount as per the record date.

According to data from BSE website, as many as 49 stocks turned ex-dividend this week. Prominent among these were - CG Power, CoForge, Mahanagar Gas, Aarti Drugs, Gail, NTPC, Container Corporation, HPCL, ITC, Shree Cement, Bharat Electronics, RITES and Sun Pharma.

In general, the share price of the particular company gets adjusted to the equivalent amount of dividend declared by the respective companies on the day it trades ex-dividend for the first time

Here's a quick chart check on 5 prominent stocks that turned ex-dividend this week.

CG Power & Industrial Solutions

Current Price: Rs 428

Support: Rs 420; Rs 410

Resistance: Rs 430

Downside Risk: 9%

CG Power has broadly been moving in a trading band of Rs 420 - Rs 480 for the last three months, with a brief upside extension up to Rs 500 and downward dip to Rs 415. Presently, the stock is again seen trading near the lower-end of the existing trading band. 

However, the bias has turned negative for the stock basis on the price-to-moving averages, and the 20-DMA (Daily Moving Average) dipping below the 50-DMA. Hence, the stock may exhibit tepid behaviour in the near-term.

Apart from the existing trading band, the stock has also support around Rs 410 in the form of its 200-DMA. Break of the same, can trigger a slide towards Rs 390. CLICK HERE FOR THE CHART

On the other hand, the stock needs to consistently trade above Rs 430 level in order to dismantle the negative set-up on the chart. 

Gail India

Current Price: Rs 171

Support: Rs 170

Resistance: Rs 180; Rs 182

Downside Risk: 9%

Gail India had rallied almost 48 per cent in the last three months, from a level of Rs 125 towards the end of November to a high of Rs 186.50 earlier this month. Thereafter, the stock has corrected and now seen testing support around its 20-DMA at Rs 170. 

Key momentum oscillators, both on the daily and weekly set-up, have seen some negative divergence. Hence, the stock is likely to extend the current fall. A 38 per cent retracted of the earlier rally, indicates a downside target of Rs 163, whereas 50 per cent retracement could see the stock dip to Rs 156. CLICK HERE FOR THE CHART

In case of an up move, the stock is likely to counter stiff resistance in the Rs 180 - Rs 182 range.

NTPC

Current Price: Rs 324

Support: Rs 318

Resistance: Rs 330; Rs 335

Downside Risk: 10.5%

The price-to-moving averages action continues to indicate a positive trend for NTPC. The stock has eased off from its recent high, and now seems on course to test support around its 20-DMA at Rs 318. CLICK HERE FOR THE CHART

The long-term chart also indicates that the stock is likely to trade with a positive bias as long as it holds above Rs 318. On the upside, the stock may look to bounce back of Rs 330 - Rs 335 range.

On the flip side, failure to hold the Rs 318 support could signal signs of likely correction at the counter. In case of a corrective action, the stock could dip to Rs 290.

Shree Cement

Current Price: Rs 27,366

Support: Rs 26,955

Upside Potential: 7%

Shree Cement is presently seen testing support around its 100-DMA, a key level which the stock has respected since September 2023. The 100-DMA of the stock stands at Rs 26,955.

As long as this held, the stock will look to bounce back towards the higher-end of the anticipated trading band, i.e. Rs 29,200 - thus indicating an upside of up to 7 per cent for the stock. CLICK HERE FOR THE CHART

Sun Pharma

Current Price: Rs 1,517

Support: Rs 1,450; Rs 1,400

Resistance: Rs 1,530

Upside Potential: 6%

The pharma major has witnessed a phenomenal rally of almost 40 per cent in the last four months. The long-term chart suggests that the stock is likely to trade with a positive bias as long as it sustains above Rs 1,405.

Similarly, the weekly chart suggests that the bullish undertone is likely to remain intact as long as Rs 1,450 is held. On the upside, the stock is trading in unchartered territory. CLICK HERE FOR THE CHART

The yearly Fibonacci chart suggests, that the stock has near resistance at Rs 1,530, above which it can potentially rally to Rs 1,610.