Cholamandalam Investment & Finance Company Ltd Shows Bullish Momentum Amid Technical Upgrades

Technical Trend Shift and Moving Averages

Recent analysis reveals that Cholamandalam Investment & Finance Company Ltd’s technical trend has transitioned from mildly bullish to bullish, signalling increased investor confidence. The daily moving averages are firmly bullish, reflecting sustained upward price momentum. The stock closed at ₹1,723.00, up 1.22% from the previous close of ₹1,702.25, with intraday highs touching ₹1,726.80. This price action is approaching the 52-week high of ₹1,780.90, indicating potential for further upside.

Moving averages, particularly the 50-day and 200-day, have been converging positively, which often precedes a sustained rally. This alignment supports the bullish outlook and suggests that the stock is gaining strength relative to its recent trading range.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bearish, indicating some short-term caution among traders. However, the monthly MACD is bullish, signalling that the longer-term momentum is firmly positive. This divergence suggests that while short-term volatility may persist, the overall trend remains upward.

Complementing this, the Know Sure Thing (KST) indicator is bullish on both weekly and monthly timeframes, reinforcing the momentum shift. The KST’s positive readings typically precede price advances, adding weight to the bullish case for Cholamandalam Investment & Finance Company Ltd.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) currently shows no definitive signal on either weekly or monthly charts, indicating that the stock is neither overbought nor oversold. This neutral RSI suggests room for further price appreciation without immediate risk of a reversal due to overextension.

Bollinger Bands, however, are bullish on both weekly and monthly timeframes. The stock price is trending near the upper band, which often indicates strong buying pressure and potential continuation of the upward trend. This technical setup is consistent with the observed price momentum and moving average signals.

Volume and Dow Theory Signals

On-Balance Volume (OBV) is mildly bullish on the weekly chart, suggesting that volume is supporting the price gains. However, the monthly OBV shows no clear trend, indicating that longer-term volume patterns are less decisive at this stage.

Dow Theory analysis presents a mixed view: weekly signals are mildly bearish, reflecting some short-term caution, while monthly signals show no clear trend. This divergence highlights the importance of monitoring price action closely in the coming weeks to confirm the sustainability of the bullish momentum.

Comparative Returns and Market Context

Cholamandalam Investment & Finance Company Ltd has outperformed the broader market significantly over multiple time horizons. Year-to-date, the stock has gained 1.22%, compared to the Sensex’s marginal decline of 0.04%. Over the past year, the stock’s return stands at an impressive 45.17%, vastly exceeding the Sensex’s 8.51% gain.

Longer-term returns are even more striking: over five years, Cholamandalam has delivered a 318.61% return, compared to the Sensex’s 77.96%. Over a decade, the stock has surged 1,240.23%, dwarfing the Sensex’s 225.63% increase. These figures underscore the company’s strong growth trajectory and resilience within the Non-Banking Financial Company (NBFC) sector.

Mojo Score Upgrade and Market Capitalisation

Reflecting these positive developments, the company’s Mojo Score stands at 72.0, with a Mojo Grade upgraded from Hold to Buy as of 30 December 2025. This upgrade signals improved confidence in the stock’s prospects based on comprehensive fundamental and technical analysis. The market capitalisation grade remains at 1, indicating a large-cap status that typically offers greater stability and liquidity for investors.

Sector and Industry Positioning

Operating within the NBFC sector, Cholamandalam Investment & Finance Company Ltd benefits from a robust industry tailwind, driven by increasing credit demand and financial inclusion initiatives. The company’s technical indicators suggest it is well-positioned to capitalise on sector growth, with bullish momentum likely to attract further investor interest.

Outlook and Investor Considerations

Given the current technical landscape, Cholamandalam Investment & Finance Company Ltd appears poised for continued upward momentum. The bullish moving averages, positive monthly MACD, and supportive Bollinger Bands suggest that the stock could test and potentially surpass its recent highs in the near term.

However, investors should remain mindful of the mildly bearish weekly MACD and Dow Theory signals, which indicate some short-term volatility risk. The neutral RSI readings provide a buffer against immediate overbought conditions, but careful monitoring of volume trends and price action is advisable.

Overall, the upgrade to a Buy rating and the strong Mojo Score reflect a favourable risk-reward profile for investors seeking exposure to the NBFC sector through a well-established large-cap player.

Summary of Key Technical Metrics:

• Current Price: ₹1,723.00 (up 1.22%)


• 52-Week High / Low: ₹1,780.90 / ₹1,169.05


• Moving Averages (Daily): Bullish


• MACD: Weekly Mildly Bearish, Monthly Bullish


• RSI: Neutral (Weekly & Monthly)


• Bollinger Bands: Bullish (Weekly & Monthly)


• KST: Bullish (Weekly & Monthly)


• Dow Theory: Weekly Mildly Bearish, Monthly No Trend


• OBV: Weekly Mildly Bullish, Monthly No Trend


• Mojo Score: 72.0 (Upgraded to Buy from Hold)

Investors looking to capitalise on the stock’s momentum should consider these technical signals alongside fundamental factors and broader market conditions to make informed decisions.

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