CHOLAFIN - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.8

📊 Analysis Summary

CHOLAFIN shows signs of technical weakness but maintains strong fundamentals, making it a moderate swing trade candidate. The stock is currently oversold and trading near its 200 DMA, which could act as a support level. However, the elevated P/E and weakening MACD suggest caution.

🔍 Technical Indicators

RSI (35.8): Near oversold — potential for technical rebound.

MACD (-16.5): Strongly bearish — momentum is weak.

Price vs DMA

Current Price (₹1,485) is below 50 DMA (₹1,553) and slightly above 200 DMA (₹1,465) — testing long-term support.

Volume: Below weekly average — indicates reduced trading interest.

📈 Fundamental Snapshot

P/E (29.3) vs Industry PE (25.2): Slightly overvalued.

PEG Ratio (1.15): Fair — growth is priced in.

ROE (19.7%) & ROCE (10.3%): Strong profitability.

EPS (₹50.7) vs Price (₹1,485): Reasonable valuation.

Qtr Profit Growth (+18.2%): Solid earnings momentum.

FII Holding ↓ (-0.27%): Mild foreign selling — slightly bearish.

DII Holding ↑ (0.56%): Domestic investors accumulating — bullish.

Debt to Equity (7.40): High, but typical for NBFCs.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹1,470–₹1,485 range, near 200 DMA support.

Wait for RSI to cross 40 and MACD to show signs of reversal.

Look for volume pickup and bullish price action confirmation.

🚪 Exit Strategy (If Already Holding)

Exit near 50 DMA (₹1,553) or partial booking at ₹1,600–₹1,620.

If price breaks below ₹1,460, consider stop-loss at ₹1,440 to limit downside.

⚖️ Final Verdict

CHOLAFIN is a technically weak but fundamentally resilient stock. It’s suitable for swing trading if technical indicators begin to reverse. Traders should be cautious and wait for confirmation before entering. Ideal for a short-term bounce, not aggressive momentum.

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