CHOLAFIN - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 Current Price: ₹1,755

📊 RSI: 66.7 (Bullish, nearing overbought)

📈 MACD: 37.1 (Strong upward momentum)

📈 DMA 50 / 200: ₹1,623 / ₹1,522 (Price above both averages)

📈 Volume: 19,22,206 vs 1Wk Avg 13,93,540 (High interest)

💰 Market Cap: ₹1,48,067 Cr

📉 Qtr Profit Decline: from ₹1,267 Cr to ₹1,136 Cr

📉 FII Holding: -1.11%

📈 DII Holding: +1.22%

📌 Optimal Entry Price

🎯 Entry Range: ₹1,720–₹1,740 (Minor pullback zone near RSI resistance)

📤 Exit Strategy

💡 Exit if: Price approaches ₹1,790–₹1,820 or RSI crosses 72 with weakening volume.

✅ Positive

• Price above both 50 DMA and 200 DMA confirms bullish trend
• Strong EPS of ₹53.0 and consistent profitability
• MACD and volume indicate strong momentum
• ROE of 19.7% reflects efficient equity utilization
• DII holding increased (+1.22%)

⚠️ Limitation

• High debt-to-equity ratio (7.40) raises leverage concerns
• ROCE (10.3%) is modest for the sector
• RSI nearing overbought zone
• FII holding declined (-1.11%)

📰 Company Negative News

• Quarterly PAT declined from ₹1,267 Cr to ₹1,136 Cr
• FII holding reduced, indicating foreign caution

📈 Company Positive News

• DII holding increased, showing domestic institutional confidence
• Strong technical breakout above key moving averages

🏭 Industry

• Industry P/E: 22.6 (lower than stock P/E of 33.3)
• NBFC sector remains growth-oriented but sensitive to interest rate cycles and credit quality

🔚 Conclusion

CHOLAFIN presents a strong swing trade setup with bullish technicals and solid fundamentals. Entry near ₹1,720–₹1,740 offers a favorable risk-reward ratio, with an exit target around ₹1,790–₹1,820. A stop-loss below ₹1,700 is recommended to manage downside risk.

I can also track RSI and MACD trends for CHOLAFIN to help you time your exit more precisely.