CHOLAFIN - Technical Analysis

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

📊 Technical Analysis Summary for CHOLAFIN

Technical Rating: 3.4

📈 Trend Status & Chart Patterns

Trend Status: The stock is currently reversing from a prior uptrend and testing key support levels.

Pattern Observed: A descending triangle is forming, with lower highs and a flat support near ₹1,465, indicating bearish pressure.

Price Action: Breakdown below 50 DMA and hovering near 200 DMA suggests caution.

📉 Moving Averages

50 DMA: ₹1,553 — Current price is below, signaling short-term weakness.

200 DMA: ₹1,465 — Current price is near, acting as a critical support.

Signal: Bearish crossover confirmed; watch for breakdown or bounce near 200 DMA.

📊 RSI & MACD

RSI: 35.8 — Near oversold zone, but not yet a reversal signal.

MACD: -16.5 — Strong negative divergence, confirming bearish momentum.

Signal: Momentum is weak; wait for bullish divergence or RSI recovery above 40.

📉 Bollinger Bands

Price is approaching the lower band, indicating oversold conditions.

Signal: Potential for a short-term bounce, but confirmation needed.

🔊 Volume Trends

Current Volume: 13.06 lakh vs 1-week Avg: 19.99 lakh — Below average, suggesting lack of conviction.

Signal: Weak volume on down days implies passive selling, not panic.

📌 Support & Resistance Zones

Level Price (₹) Commentary

Support 1 1,465 200 DMA, critical support zone

Support 2 1,420 Previous swing low

Resistance 1 1,553 50 DMA, short-term resistance

Resistance 2 1,600 Psychological level, prior bounce

🎯 Entry & Exit Zones

Optimal Entry: ₹1,460–₹1,475 (near 200 DMA with tight stop-loss)

Exit Target: ₹1,550–₹1,580 (if bounce confirmed)

Stop-Loss: ₹1,440 (below recent swing low)

🧭 Final Take

CHOLAFIN is showing signs of short-term reversal with bearish momentum indicators and a breakdown below the 50 DMA. However, the 200 DMA is holding as a key support. Traders should wait for confirmation of a bounce before entering. Long-term investors may consider accumulating near ₹1,465 with a disciplined stop-loss.

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