CHOLAHLDNG - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: CHOLAHLDNG is trading below its 50 DMA (1,892 ₹) but slightly above its 200 DMA (1,838 ₹), showing mixed signals. Current price (1,833 ₹) is consolidating near support levels after a decline from highs (2,299 ₹).

📈 Moving Averages: Price < 50 DMA but ≈ 200 DMA → short-term weakness, medium-term neutral bias. Sustaining above 1,892 ₹ would confirm strength.

📉 RSI: At 39.4, RSI is oversold, suggesting potential for short-term rebound.

📉 MACD: Negative (-12.1), confirming bearish crossover and weak momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (2,67,718) is higher than 1-week average (1,83,187), showing increased activity but mostly on the downside.

📍 Support & Resistance:

- Strong support: 1,800 ₹

- Major support: 1,357 ₹ (52-week low)

- Immediate resistance: 1,892 ₹ (50 DMA)

- Major resistance: 2,000–2,050 ₹

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 1,800–1,830 ₹ near support. Exit zone: 1,880–1,920 ₹ if resistance is tested. Breakout above 1,892–2,000 ₹ would confirm reversal attempt.

🔄 Trend Status: The stock is consolidating with bearish bias, oversold but not yet reversing.

Positive

• Debt-free company (Debt-to-equity: 0.00).
• DII holdings increased (+1.09%), showing strong domestic institutional support.
• Quarterly PAT improved significantly (27.2 Cr. vs 2.11 Cr.).
• EPS of 3.66 ₹ supports valuation comfort despite high P/E.

Limitation

• Extremely high P/E (501) compared to industry PE (30.2), showing severe overvaluation.
• PEG ratio (98.5) indicates poor valuation relative to growth prospects.
• ROCE (6.26%) and ROE (4.88%) are weak compared to peers.
• Dividend yield of 0.07% is negligible.

Company Negative News

• FII holdings declined (-0.93%), showing reduced foreign investor confidence.
• MACD bearish crossover indicates near-term weakness.

Company Positive News

• DII holdings increased (+1.09%), reflecting domestic institutional confidence.
• Quarterly PAT growth (+15.5%) shows improving earnings momentum.

Industry

• Industry PE at 30.2 is far lower than CHOLAHLDNG’s PE (501), showing sector trades at more reasonable valuations.
• Holding company structure makes earnings cyclical and dependent on subsidiaries’ performance.

Conclusion

⚖️ CHOLAHLDNG is consolidating with bearish bias, trading below its 50 DMA but near 200 DMA support. Entry near 1,800–1,830 ₹ could be considered for short-term gains, with exit around 1,880–1,920 ₹. A breakout above 1,892–2,000 ₹ would confirm reversal. Fundamentals show debt-free stability, but extreme overvaluation and weak return ratios remain major concerns for long-term investors.