CHOLAFIN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 CHOLAFIN is currently in a strong uptrend, supported by bullish momentum indicators and price action above key moving averages.

📊 Technical Overview

• Trend Status: Trending upward — price has climbed from ₹1,168 to ₹1,716, nearing its 52-week high.
• Moving Averages: Price is above both 50 DMA (₹1,614) and 200 DMA (₹1,517), confirming bullish sentiment.
• RSI (59.4): Mid-to-high range, indicating healthy momentum with room for further upside.
• MACD (36.4): Strong positive crossover supports continued bullish momentum.
• Bollinger Bands: Price near upper band, suggesting strength and potential breakout.
• Volume: Slightly below average (11.15L vs 14.66L), indicating mild caution among traders.

📌 Entry & Exit Zones

• Support Zone: ₹1,600–₹1,650 — ideal for entry on pullbacks.
• Resistance Zone: ₹1,750–₹1,782 — potential exit or partial profit booking zone.
• Breakout Level: ₹1,782 — crossing this could lead to new highs.

✅ Positive

• Strong ROE (19.7%) and EPS of ₹53.0 reflect solid profitability.
• Price action above key moving averages with bullish MACD and RSI.
• Positive DII holding change (+1.22%) shows domestic institutional confidence.

⚠️ Limitation

• High debt-to-equity ratio (7.40) may raise leverage concerns.
• Quarterly PAT declined from ₹1,267 Cr to ₹1,136 Cr.
• Volume below average, suggesting cautious participation.

📰 Company Negative News

• Decline in FII holdings (-1.11%) may reflect foreign investor caution.
• Quarterly profit dipped despite strong annual performance.

🌟 Company Positive News

• Strong quarterly profit (₹1,136 Cr) and consistent growth (20.6% variation).
• Domestic institutions increasing stake, signaling long-term confidence.

🏭 Industry

• Operates in financial services, a sector sensitive to interest rates and credit cycles.
• Industry P/E (22.3) is lower than the stock’s (32.5), indicating premium valuation.

🧾 Conclusion

• CHOLAFIN is technically strong with bullish indicators and solid fundamentals.
• Entry near ₹1,600–₹1,650 is favorable; watch for breakout above ₹1,782.
• Long-term investors may benefit from growth and valuation; short-term traders should monitor volume and resistance levels.