CHOLAFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | CHOLAFIN | Market Cap | 1,34,854 Cr. | Current Price | 1,583 ₹ | High / Low | 1,832 ₹ |
| Stock P/E | 25.8 | Book Value | 357 ₹ | Dividend Yield | 0.13 % | ROCE | 9.70 % |
| ROE | 19.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,571 ₹ | DMA 200 | 1,589 ₹ |
| Chg in FII Hold | -1.69 % | Chg in DII Hold | 2.37 % | PAT Qtr | 1,641 Cr. | PAT Prev Qtr | 1,288 Cr. |
| RSI | 52.0 | MACD | -2.38 | Volume | 5,83,475 | Avg Vol 1Wk | 12,72,020 |
| Low price | 1,299 ₹ | High price | 1,832 ₹ | PEG Ratio | 1.03 | Debt to equity | 6.94 |
| 52w Index | 53.3 % | Qtr Profit Var | 29.5 % | EPS | 61.3 ₹ | Industry PE | 20.3 |
📊 Chart Patterns & Trend: CHOLAFIN is consolidating after a decline from its 1,832 ₹ high. Current price (1,583 ₹) is above the 50 DMA (1,571 ₹) but slightly below the 200 DMA (1,589 ₹), showing short-term support but medium-term resistance. Support lies near 1,550–1,570 ₹, with resistance at 1,600–1,620 ₹. Trendlines suggest sideways consolidation with weak momentum.
📈 Moving Averages: Price above 50 DMA indicates short-term strength, but trading below 200 DMA signals medium-term caution.
📉 RSI: At 52.0, RSI is neutral, showing balanced momentum.
📉 MACD: Negative (-2.38), confirming weak short-term momentum.
📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with limited volatility.
📊 Volume Trends: Current volume (5,83,475) is below the 1-week average (12,72,020), showing reduced participation and lack of breakout strength.
💡 Momentum Signals: Neutral to bearish bias. A breakout above 1,600–1,620 ₹ could trigger upside toward 1,650–1,700 ₹, while breakdown below 1,550 ₹ risks further decline.
🎯 Entry Zone: 1,550–1,570 ₹ (support region).
🎯 Exit Zone: 1,600–1,620 ₹ (resistance region; extended target 1,650–1,700 ₹).
📌 Status: Consolidating with weak momentum.
Positive
✔ EPS of 61.3 ₹ supports valuation strength.
✔ Strong ROE (19.3%) highlights efficient capital use.
✔ Quarterly PAT growth (1,641 Cr. vs 1,288 Cr.) shows earnings momentum.
✔ DII holdings increased (+2.37%), reflecting domestic institutional support.
✔ PEG ratio of 1.03 indicates fair valuation relative to growth.
Limitation
⚠ Price trading below 200 DMA, showing medium-term resistance.
⚠ Negative MACD (-2.38) confirms weak short-term momentum.
⚠ High debt-to-equity ratio (6.94) adds financial risk.
⚠ ROCE at 9.70% is modest compared to peers.
⚠ Volume below average, limiting breakout potential.
Company Negative News
⚠ FII holdings decreased (-1.69%), showing reduced foreign investor confidence.
Company Positive News
✔ Quarterly PAT growth highlights improving earnings momentum.
✔ DII holdings increased (+2.37%), reflecting domestic institutional support.
Industry
🏭 NBFC sector benefits from rising credit demand and financial inclusion initiatives in India.
📈 Industry PE (20.3) lower than CHOLAFIN’s PE (25.8), suggesting premium valuation.
Conclusion
📌 CHOLAFIN is consolidating near support with weak short-term momentum. Entry around 1,550–1,570 ₹ offers favorable risk-reward, while exits near 1,600–1,620 ₹ are prudent unless momentum strengthens for a breakout toward 1,650–1,700 ₹. Long-term investors should monitor debt levels and valuation premium closely.
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