Ahead of ex-dividend date, this Tata Group stock is up 32% from March low; Rs 1,900 target possible?

Shares of Tata Communications, which will turn ex-dividend on June 19, are in a recovery phase.  The multibagger stock, which hit a 52-week low of Rs 1293 on March 4 this year, has gained 32% on BSE till date. The stock of the Tata Group firm will trade ex-date on June 19 for a final dividend of  250 per cent or Rs 25 per share of Rs 10 face value. 

The Tata Group stock was trading at Rs 1710 on BSE today. Market cap of the firm stood at Rs 48,578 crore. 

Total 2141 shares of the firm changed hands amounting to a turnover of Rs 36.54 lakh on BSE today. Market cap of the Tata Group firm stood at Rs 48,578 crore. 

Tata Communications shares are trading higher than the 20-day, 30 day, 50-day, 100-day but lower than the 5 day, 10 day and 200-day moving averages. 

Tata Communications shares have gained 191% in five years and risen 516% in ten years. 

Om Mehra, Technical Research Analyst, SAMCO Securities appears bullish on the outlook of the stock. 

"Tata Communications has been in a steady recovery phase, forming a clear pattern of higher highs and higher lows after a prolonged corrective phase. The stock is currently trading near Rs 1,710, showing signs of resilience and accumulation near the previous resistance zone. It has reclaimed the 20-day SMA and is now inching closer to the 200-day SMA, which is marginally placed above the current market price (CMP) Rs 1,715. A decisive close above this long-term average would further strengthen the medium-term trend and might  attract fresh buying interest. The recent pullback from the Rs 1,790–1,800 resistance zone was healthy and measured," said Mehra.  

"The stock bounced off the 50-day SMA, which now acts as immediate support. This confluence makes Rs 1,680– Rs 1,660 an ideal buy-on-dip area. The daily RSI is at 60 and has ample headroom to move higher. The MACD remains in positive territory, though with a narrowing histogram, suggesting a short-term consolidation. A sustained move above Rs 1,750 could trigger a rally toward Rs 1,830 and Rs 1,910 levels. As long as Rs 1,645 holds, the broader trend remains positive," added Mehra. 

Jigar S Patel from Anand Rathi finds support at Rs 1650 and resistance at Rs 1740 for the Tata Group stock. "A decisive move above the Rs 1740 level may trigger a further upside of Rs 1800. The expected trading range will be between Rs 1650 and Rs 1800 for the short-term," said Patel. 

Hardik Matalia, Derivative Analyst, Choice Broking said, "The stock is currently trading at Rs 1710, The stock has closed above all the major EMAs, especially reclaiming the 200 EMA with conviction, which typically acts as a long-term trend indicator. This crossover is an encouraging signal for positional and swing traders. The recent consolidation near the Rs 1700 zone is healthy, especially as it holds above the breakout zone and 200 EMA, which now may act as a support level." 

"The reclaim of the 20-day EMA is especially noteworthy, as it often signifies a shift from bearish to bullish sentiment. This technical alignment suggests the potential beginning of a medium- to long-term uptrend. If this trend continues, the stock could reach a short-term target of Rs 1830. The trend remains positively biased with a bullish structure as long as the stock sustains above Rs 1640. A close above Rs 1740 on strong volumes could pave the way for the stock to test Rs 1780– Rs 1830 in the near term. Traders with positions may hold with a stop-loss at Rs 1640 on a closing basis," added Matalia.

Tata Communications is engaged in the business of providing international telecommunications services. The company’s segments include Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). The VS segment includes international and national long distance voice services. The DMS segment includes corporate data transmission services, virtual private network signaling and roaming services, television, and other network and managed services. The RE segment includes lease rentals for premises given on lease and does not include premises held for capital appreciation.