CHOLAFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | CHOLAFIN | Market Cap | 1,29,600 Cr. | Current Price | 1,521 ₹ | High / Low | 1,832 ₹ |
| Stock P/E | 26.8 | Book Value | 307 ₹ | Dividend Yield | 0.13 % | ROCE | 10.3 % |
| ROE | 19.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,655 ₹ | DMA 200 | 1,617 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.27 % | PAT Qtr | 1,288 Cr. | PAT Prev Qtr | 1,155 Cr. |
| RSI | 33.5 | MACD | -47.7 | Volume | 21,57,842 | Avg Vol 1Wk | 22,69,970 |
| Low price | 1,359 ₹ | High price | 1,832 ₹ | PEG Ratio | 1.04 | Debt to equity | 7.24 |
| 52w Index | 34.2 % | Qtr Profit Var | 18.5 % | EPS | 57.6 ₹ | Industry PE | 17.2 |
📈 Chart & Trend: CHOLAFIN is trading at ₹1,521, below both its 50 DMA (₹1,655) and 200 DMA (₹1,617). This indicates short-term weakness and medium-term pressure, with the stock consolidating near support levels.
📊 Momentum Indicators:
- RSI at 33.5 suggests oversold conditions, potential for rebound.
- MACD at -47.7 shows bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (21.6 lakh) is slightly below 1-week average (22.7 lakh), showing reduced participation.
🔑 Support & Resistance:
- Support zone: ₹1,480–₹1,500
- Resistance zone: ₹1,600–₹1,620 (near 200 DMA)
- Breakout resistance: ₹1,650–₹1,670 (near 50 DMA)
- Long-term support: ₹1,360
📌 Entry & Exit Zones:
- Entry: ₹1,480–₹1,520 (near support)
- Exit: ₹1,600–₹1,650 (resistance zone)
- Stop-loss: ₹1,450
📉 Trend Status: Consolidating with bearish bias. Needs a breakout above ₹1,617–₹1,655 to confirm reversal and trend continuation.
Positive
- EPS of ₹57.6 with PEG ratio of 1.04 indicates fair valuation relative to growth.
- Quarterly PAT growth (₹1,288 Cr vs ₹1,155 Cr) shows improving profitability.
- ROE at 19.7% reflects strong shareholder returns.
- DII holdings increased by 0.27%, showing domestic investor confidence.
Limitation
- ROCE at 10.3% is modest compared to industry leaders.
- Stock trading below both 50 DMA and 200 DMA indicates weakness.
- High debt-to-equity ratio of 7.24 raises leverage concerns.
- FII holdings decreased by 0.29%, showing reduced foreign confidence.
Company Negative News
- No major recent negative news reported, but high leverage and declining FII holdings are concerns.
Company Positive News
- Strong quarterly profit growth supports earnings momentum.
- Domestic institutional inflows indicate growing confidence.
Industry
- Industry PE at 17.2 vs stock PE at 26.8 shows CHOLAFIN trades at a premium.
- NBFC sector supported by credit demand, though margin pressures and regulatory oversight remain risks.
Conclusion
⚡ CHOLAFIN is consolidating with bearish bias, trading below key moving averages. Entry near ₹1,480–₹1,520 offers margin of safety, with exit targets around ₹1,600–₹1,650. Strong earnings growth and ROE support medium-term prospects, but high leverage and weak momentum indicators remain key risks.
Would you like me to extend this into a peer benchmarking overlay comparing CHOLAFIN with Bajaj Finance, Shriram Finance, and Muthoot Finance to highlight relative strength, valuation gaps, and sector rotation opportunities?