Technical Trend Evolution and Price Movement
The stock, currently trading at ₹1,707.50, has edged higher by 0.54% from its previous close of ₹1,698.35. Intraday price action saw a high of ₹1,711.60 and a low of ₹1,672.45, reflecting a relatively tight trading range but with a positive bias. The 52-week high stands at ₹1,780.90, indicating that the stock is trading close to its yearly peak, while the 52-week low is ₹1,169.05, underscoring significant appreciation over the past year.
Cholamandalam’s technical trend has upgraded from mildly bullish to bullish, signalling a more robust upward momentum. This is corroborated by the daily moving averages which are firmly bullish, indicating that short-term price averages are above longer-term averages, a classic sign of upward momentum.
MACD and RSI: Mixed but Positive Signals
The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bearish, suggesting some short-term caution among traders. However, the monthly MACD is bullish, indicating that the longer-term momentum is firmly positive. This divergence between weekly and monthly MACD readings suggests that while short-term volatility may persist, the broader trend favours accumulation and price appreciation.
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This implies that the stock is neither overbought nor oversold, providing room for further upward movement without immediate risk of a technical correction.
Bollinger Bands and KST Oscillator Confirm Strength
Bollinger Bands on the weekly chart are bullish, with the price trading near the upper band, signalling strong buying interest and potential continuation of the uptrend. The monthly Bollinger Bands are mildly bullish, reinforcing the positive momentum over a longer horizon.
The Know Sure Thing (KST) oscillator, a momentum indicator that aggregates multiple rate-of-change calculations, is bullish on both weekly and monthly timeframes. This dual confirmation suggests that momentum is accelerating, supporting the bullish technical trend upgrade.
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Additional Technical Indicators: OBV and Dow Theory
The On-Balance Volume (OBV) indicator, which measures buying and selling pressure, is mildly bullish on the weekly chart but mildly bearish on the monthly chart. This mixed signal suggests that while recent trading volumes support the upward price movement, longer-term volume trends warrant cautious monitoring.
Dow Theory analysis shows a mildly bearish stance on the weekly timeframe but a bullish outlook on the monthly scale. This again highlights the contrast between short-term fluctuations and longer-term positive trends, reinforcing the importance of a patient investment horizon.
Comparative Performance and Market Context
Cholamandalam Investment & Finance Company Ltd has significantly outperformed the broader market over multiple timeframes. Year-to-date, the stock has delivered a remarkable 43.9% return compared to the Sensex’s 8.36%. Over the past year, the stock’s return stands at 40.38%, vastly exceeding the Sensex’s 8.21% gain. Even more impressively, the stock has generated a 3-year return of 136.15% and a 5-year return of 343.79%, dwarfing the Sensex’s respective returns of 39.17% and 77.34%. Over a decade, Cholamandalam’s return of 1,231.59% is a testament to its sustained growth and resilience, far outpacing the Sensex’s 226.18%.
This strong relative performance underscores the company’s robust fundamentals and investor confidence, which are now being reflected in its technical indicators.
Mojo Score Upgrade and Market Capitalisation
Reflecting these positive developments, the company’s Mojo Score has improved to 72.0, accompanied by an upgrade in its Mojo Grade from Hold to Buy as of 30 December 2025. This upgrade signals increased conviction among analysts regarding the stock’s potential for further appreciation. The market capitalisation grade remains at 1, indicating a large-cap status with strong liquidity and institutional interest.
Outlook and Investment Considerations
With the convergence of bullish signals from moving averages, Bollinger Bands, and the KST oscillator, alongside a positive monthly MACD and a neutral RSI, Cholamandalam Investment & Finance Company Ltd appears well-positioned for continued upward momentum. Investors should note the mild bearishness in some weekly indicators, which may introduce short-term volatility, but the overall technical landscape favours accumulation.
Given the stock’s proximity to its 52-week high and its strong historical returns, it remains an attractive proposition for investors seeking exposure to the NBFC sector with a blend of growth and stability. The recent technical upgrade aligns with the company’s solid fundamentals and market leadership.
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Summary
Cholamandalam Investment & Finance Company Ltd’s technical parameters have shifted decisively towards a bullish outlook, supported by strong moving averages, positive momentum indicators, and a favourable long-term MACD. While some weekly indicators suggest caution, the overall trend is positive, reflecting the company’s strong market position and impressive historical returns. The recent upgrade in Mojo Grade to Buy further validates this outlook, making the stock a compelling candidate for investors seeking growth in the NBFC sector.
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