CHOLAFIN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.0

📊 Chart Patterns: CHOLAFIN is trading slightly below its 50 DMA (1,684 ₹) but above its 200 DMA (1,571 ₹), showing medium-term bullish strength with short-term consolidation. Current price (1,645 ₹) is near support levels after testing highs (1,782 ₹).

📈 Moving Averages: Price > 200 DMA but < 50 DMA → medium-term bullish structure, short-term neutral bias. Sustaining above 1,684 ₹ would confirm strength.

📉 RSI: At 44.9, RSI is neutral-to-weak, suggesting limited buying strength but potential rebound near support.

📈 MACD: Positive (2.94), showing bullish crossover and mild upward momentum.

📊 Bollinger Bands: Price near mid-band, indicating consolidation phase with potential breakout if volume rises.

📊 Volume Trends: Current volume (7,58,381) is below 1-week average (11,12,575), showing reduced participation and lack of strong momentum.

📍 Support & Resistance:

- Strong support: 1,620–1,630 ₹

- Major support: 1,571 ₹ (200 DMA)

- Immediate resistance: 1,684 ₹ (50 DMA)

- Major resistance: 1,750–1,782 ₹ (recent high)

🚦 Momentum Signals: Short-term momentum is consolidating with mild bullish bias. Entry zone: 1,620–1,640 ₹ near support. Exit zone: 1,680–1,720 ₹ if resistance is tested. Breakout above 1,782 ₹ would confirm continuation of uptrend.

🔄 Trend Status: The stock is consolidating with bullish bias, supported by positive MACD and medium-term strength.

Positive

• EPS of 55.2 ₹ supports valuation comfort.
• Quarterly PAT growth (+20%) indicates strong earnings momentum.
• DII holdings increased (+1.22%), showing domestic institutional support.
• ROE (19.7%) highlights strong shareholder returns.

Limitation

• Stock trading below 50 DMA, showing short-term weakness.
• High debt-to-equity ratio (7.24) indicates leverage risk.
• Dividend yield of 0.12% is very low, limiting income support.
• P/E (29.8) is higher than industry PE (21.2), showing relative overvaluation.

Company Negative News

• FII holdings declined (-1.11%), showing reduced foreign investor confidence.
• Volume below average, indicating lack of strong buying interest.

Company Positive News

• DII holdings increased (+1.22%), reflecting domestic institutional confidence.
• Quarterly PAT improved to 1,155 Cr. from 1,136 Cr., showing steady growth.

Industry

• Industry PE at 21.2 is lower than CHOLAFIN’s PE (29.8), showing sector trades at more reasonable valuations.
• NBFC sector benefits from credit demand growth but is sensitive to interest rate cycles.

Conclusion

⚖️ CHOLAFIN is consolidating with bullish bias, trading above its 200 DMA but below 50 DMA. Entry near 1,620–1,640 ₹ could be considered for short-term gains, with exit around 1,680–1,720 ₹. A breakout above 1,782 ₹ would confirm continuation of the uptrend. Fundamentals show strong earnings growth and ROE, but high leverage and short-term technical weakness remain concerns.