Key Events This Week
16 Feb: Stock opens at Rs.1,714.80, modest gain of 0.35%
17 Feb: Technical momentum shifts to mildly bullish; price rises 1.03% to Rs.1,732.40
19 Feb: Sharp 14.5% surge in open interest amid 2.76% price decline to Rs.1,669.50
20 Feb: Open interest jumps 23.5% despite marginal 0.09% price gain; week closes at Rs.1,671.05
16 February: Modest Start with Slight Price Gain
Cholamandalam Investment & Finance Company Ltd began the week on a positive note, closing at Rs.1,714.80, up 0.35% from the previous Friday’s close of Rs.1,708.90. This modest gain came alongside a stronger Sensex, which rose 0.70% to 36,787.89. Trading volume was relatively low at 8,373 shares, indicating cautious investor engagement as the stock consolidated near its recent levels.
17 February: Technical Momentum Shifts to Mildly Bullish, Price Advances 1.03%
The stock gained further traction on 17 February, rising 1.03% to Rs.1,732.40 on increased volume of 17,510 shares. This price move coincided with a nuanced shift in technical momentum from bullish to mildly bullish, as detailed by mixed signals from key indicators such as MACD, RSI, and Bollinger Bands. While daily moving averages remained supportive, weekly MACD turned mildly bearish, suggesting a short-term pause amid longer-term optimism. The Sensex also advanced 0.32% to 36,904.38, but Cholamandalam outperformed the benchmark on this day.
19 February: Sharp Open Interest Surge Amid Price Decline
On 19 February, Cholamandalam’s stock price declined sharply by 2.76% to Rs.1,669.50, underperforming both the NBFC sector’s 0.85% fall and the Sensex’s 1.45% drop. Despite this, the derivatives market saw a significant 14.52% increase in open interest, rising from 34,399 to 39,395 contracts. Futures volume was robust at 19,565 contracts, with a futures market value of approximately ₹1,24,540.63 lakhs and options notional value exceeding ₹85,83,83,1043 lakhs. This divergence between falling spot price and rising open interest suggests complex market positioning, possibly reflecting hedging or volatility speculation rather than directional conviction. Delivery volume surged to 10.45 lakh shares, an 81.23% increase over the five-day average, indicating heightened investor participation despite the price weakness.
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20 February: Open Interest Surges 23.5% Amid Mixed Market Signals
The final trading day of the week saw Cholamandalam’s open interest in derivatives jump 23.48%, from 34,086 to 42,091 contracts, accompanied by a futures volume of 23,064 contracts. The futures market value rose to approximately ₹1,62,751 lakhs, while the options market value stood at ₹8,142 crore, underscoring significant derivatives interest. Despite this, the stock price edged up only 0.09% to Rs.1,671.05, underperforming the NBFC sector’s 0.76% gain and the Sensex’s 0.41% rise. Delivery volumes declined by 19.83% to 6.03 lakh shares, suggesting waning conviction among long-term holders. The stock remained below its short- and medium-term moving averages (5-day, 20-day, 50-day, 100-day) but above the 200-day average, indicating consolidation with resistance overhead. This technical setup, combined with elevated open interest, points to market participants positioning for a potential breakout or breakdown amid cautious sentiment.
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Weekly Price Performance: Stock vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.1,714.80 | +0.35% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.1,732.40 | +1.03% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.1,716.95 | -0.89% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.1,669.50 | -2.76% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.1,671.05 | +0.09% | 36,674.32 | +0.41% |
Key Takeaways
Positive Signals: The technical momentum shift to mildly bullish on 17 February, supported by daily moving averages and a Mojo Score upgrade to Buy (71.0), indicates underlying strength in Cholamandalam’s medium- to long-term outlook. The stock’s trading above its 200-day moving average further supports this view. Elevated open interest in derivatives on 19 and 20 February reflects heightened market interest and potential for significant price movement ahead.
Cautionary Signals: Despite the technical optimism, the stock underperformed the Sensex for the week, declining 2.21% amid mixed price action and fluctuating investor participation. The weekly MACD and KST indicators showed mild bearishness, and the stock remained below several short- and medium-term moving averages, signalling resistance and consolidation. Declining delivery volumes on 20 February suggest reduced conviction among long-term holders, warranting careful monitoring of price and volume trends.
Conclusion
The week ending 20 February 2026 was characterised by a complex interplay of technical shifts, derivatives market activity, and price volatility for Cholamandalam Investment & Finance Company Ltd. While the stock’s technical momentum softened to a mildly bullish stance and its Mojo Score upgrade signals positive fundamentals, the price underperformance relative to the Sensex and mixed moving average signals highlight ongoing consolidation and uncertainty. The sharp surges in open interest amid subdued price gains suggest that market participants are positioning for a potential directional move, making it essential for investors to closely track volume, price momentum, and derivatives activity in the coming sessions. Overall, Cholamandalam remains a large-cap NBFC stock with strong long-term prospects, but the current environment calls for a balanced and vigilant approach.
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