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CHOLAFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | CHOLAFIN | Market Cap | 1,34,701 Cr. | Current Price | 1,596 ₹ | High / Low | 1,832 ₹ |
| Stock P/E | 27.8 | Book Value | 307 ₹ | Dividend Yield | 0.13 % | ROCE | 10.3 % |
| ROE | 19.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,681 ₹ | DMA 200 | 1,600 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.27 % | PAT Qtr | 1,288 Cr. | PAT Prev Qtr | 1,155 Cr. |
| RSI | 32.9 | MACD | -25.3 | Volume | 7,02,161 | Avg Vol 1Wk | 15,85,155 |
| Low price | 1,239 ₹ | High price | 1,832 ₹ | PEG Ratio | 1.08 | Debt to equity | 7.24 |
| 52w Index | 60.2 % | Qtr Profit Var | 18.5 % | EPS | 57.6 ₹ | Industry PE | 19.0 |
📊 Technical Analysis
- Chart Patterns: CHOLAFIN has corrected from its 52-week high of 1,832 ₹ and is consolidating near 1,596 ₹.
- Moving Averages: Price (1,596 ₹) is below 50 DMA (1,681 ₹) but close to 200 DMA (1,600 ₹), showing medium-term support but short-term weakness.
- RSI: At 32.9, oversold zone — potential rebound possible.
- MACD: Negative (-25.3), confirming bearish momentum.
- Bollinger Bands: Price near lower band, suggesting possible support zone.
- Volume Trends: Current volume (7.0 lakh) below 1-week average (15.8 lakh), showing weak participation.
📈 Momentum & Signals
- Short-term Momentum: Weak due to negative MACD and oversold RSI.
- Support Levels: 1,580 ₹ (near-term), 1,550 ₹ (major support).
- Resistance Levels: 1,620 ₹ (short-term), 1,681 ₹ (50 DMA).
- Optimal Entry Zone: 1,570–1,600 ₹ (close to support).
- Optimal Exit Zone: 1,620–1,680 ₹ (near resistance).
- Trend Status: Consolidating with bearish bias, oversold signals suggest possible reversal.
✅ Positive
- EPS of 57.6 ₹ supports strong earnings visibility.
- Quarterly PAT improved (1,288 Cr vs 1,155 Cr), showing sequential growth.
- DII holdings increased (+0.27%), showing domestic institutional support.
⚠️ Limitation
- High debt-to-equity ratio (7.24) raises financial risk.
- P/E (27.8) above industry PE (19.0), suggesting premium valuation.
- ROCE (10.3%) is modest compared to peers.
📉 Company Negative News
- FII holdings decreased (-0.29%), showing reduced foreign investor confidence.
- Stock trading below 50 DMA, signaling short-term weakness.
📈 Company Positive News
- Quarterly profit variation of 18.5% highlights strong growth momentum.
- Stock trading near mid-range of 52-week index (60.2%), showing resilience despite correction.
🏭 Industry
- NBFC sector supported by rising credit demand and financial inclusion initiatives.
- Industry PE at 19.0 vs stock PE at 27.8 — stock trades at premium valuation.
🔎 Conclusion
- CHOLAFIN is consolidating with short-term bearish signals but oversold RSI suggests potential rebound.
- Best entry near 1,570–1,600 ₹, exit near 1,620–1,680 ₹ unless breakout above 1,681 ₹ occurs.
- Medium-term outlook cautious due to high leverage and premium valuation, though profit growth and sector demand provide support.