CHOLAFIN - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.0

📊 Technical & Momentum Overview

✅ Bullish Setup

Price Action: Trading above both 50 DMA (₹1,511) and 200 DMA (₹1,473), confirming short-term and medium-term strength.

MACD (18.6): Positive and rising, indicating momentum continuation.

RSI (64.5): Neutral-bullish zone, tradable but nearing overbought.

52W Index (81%): Strong relative performance, near yearly high.

⚠️ Watchouts

Volume Dip: Current volume is ~34% below 1-week average—momentum not broadly supported.

Debt-to-Equity (7.40): High leverage—requires tight risk control.

FII Outflow (-0.27%): Mild foreign investor caution.

PAT Decline: ₹1,136 Cr vs ₹1,267 Cr—slight earnings contraction.

📈 Valuation & Fundamentals

P/E (30.0) vs Industry PE (24.0): Slight premium, but justified by ROE (19.7%) and EPS (₹53).

PEG (1.17): Reasonable growth-adjusted valuation.

ROCE (10.3%): Moderate efficiency.

DII Inflow (+0.56%): Domestic support building.

🎯 Optimal Entry Price

Buy Zone: ₹1,510–₹1,525 (near 50 DMA and VWAP)

Momentum Entry: ₹1,590–₹1,600 if RSI crosses 66 and volume improves

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹1,660–₹1,680 (near 52W high and resistance zone)

Stop Loss: ₹1,475 (below 200 DMA and recent support)

Exit Trigger: RSI > 70 or MACD flattens

Selva, CHOLAFIN is a solid swing candidate with technical strength and decent valuation support, though the leverage and volume dip call for disciplined execution. Want help scripting alerts for RSI breakout or building a financials basket with better debt-adjusted metrics?

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