Cholamandalam Investment & Finance Company Ltd Shows Strong Technical Momentum Amid Bullish Shift

Technical Momentum and Moving Averages Indicate Strength

The stock’s daily moving averages have turned decisively bullish, reflecting sustained upward price movement. This is a critical confirmation for traders and investors, as moving averages smooth out price fluctuations and highlight the prevailing trend. Cholamandalam’s price currently trades near its 52-week high of ₹1,831.80, a strong indication of positive market sentiment.

On the weekly and monthly charts, the technical trend has upgraded from mildly bullish to outright bullish, signalling increased buying interest. The daily moving averages support this momentum, suggesting that short-term price action is aligned with longer-term strength.

MACD and RSI Offer Mixed but Positive Signals

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. While the weekly MACD remains mildly bearish, the monthly MACD has turned bullish, indicating that longer-term momentum is gaining traction despite some short-term consolidation. This divergence often precedes a sustained rally, as monthly trends tend to dominate over weekly fluctuations.

The Relative Strength Index (RSI), a momentum oscillator, currently shows no definitive signal on both weekly and monthly timeframes. This neutrality suggests that the stock is neither overbought nor oversold, leaving room for further upward movement without immediate risk of a correction.

Bollinger Bands and KST Signal Bullish Bias

Bollinger Bands, which measure volatility and price levels relative to recent averages, are bullish on both weekly and monthly charts. This indicates that the stock price is trending towards the upper band, often a sign of strength and potential continuation of the rally.

The Know Sure Thing (KST) indicator, a momentum oscillator, shows a mildly bearish stance on the weekly timeframe but has turned bullish on the monthly chart. This mixed signal suggests short-term caution but a positive long-term outlook, consistent with other indicators.

Volume and Dow Theory Trends

On-Balance Volume (OBV), which tracks buying and selling pressure, shows no clear trend on the weekly chart but a mildly bullish pattern on the monthly scale. This suggests that accumulation is occurring over the longer term, supporting price appreciation.

Dow Theory analysis reveals a mildly bullish weekly trend, while the monthly trend is mildly bearish. This divergence highlights the importance of monitoring short-term price action closely, although the overall technical environment favours a bullish stance.

Strong Relative Performance Against Sensex

Cholamandalam Investment & Finance Company Ltd has outperformed the Sensex significantly across multiple timeframes. Over the past week, the stock returned 10.94% compared to the Sensex’s 2.94%. Over one month, the stock gained 2.96% versus the Sensex’s 0.59%. Year-to-date, Cholamandalam has risen 3.99%, while the Sensex declined by 1.36%. The one-year return of 28.25% dwarfs the Sensex’s 7.97%, and over five years, the stock’s return of 285.71% far exceeds the benchmark’s 63.78%. Even on a decade-long horizon, Cholamandalam’s 1,187.04% return is nearly five times the Sensex’s 249.97%.

Mojo Score Upgrade Reflects Improved Outlook

MarketsMOJO has upgraded Cholamandalam’s Mojo Grade from Hold to Buy as of 13 January 2026, reflecting enhanced confidence in the stock’s prospects. The company’s Mojo Score stands at a robust 78.0, signalling strong technical and fundamental attributes. Despite a Market Cap Grade of 1, indicating a relatively smaller market capitalisation within its sector, the stock’s technical momentum and price action justify the upgrade.

The upgrade is supported by the stock’s ability to maintain a price above key moving averages and the bullish signals from Bollinger Bands and monthly MACD. This combination suggests that the stock is poised for further gains, provided broader market conditions remain favourable.

Price Range and Volatility Considerations

On 10 February 2026, Cholamandalam’s price fluctuated between a low of ₹1,747.25 and a high of ₹1,776.55, closing near the upper end of the day’s range at ₹1,770.20. This intraday strength supports the bullish technical narrative. The 52-week low of ₹1,301.00 and high of ₹1,831.80 provide a wide trading band, with the current price approaching the upper boundary, signalling potential resistance but also the possibility of a breakout if momentum sustains.

Sector Context and Comparative Analysis

Within the NBFC sector, Cholamandalam’s technical indicators stand out positively. While the sector has experienced mixed trends amid regulatory and macroeconomic challenges, Cholamandalam’s price momentum and technical upgrades suggest it is better positioned than many peers. The stock’s consistent outperformance relative to the Sensex and its sector peers highlights its resilience and growth potential.

Investor Takeaway and Outlook

Cholamandalam Investment & Finance Company Ltd’s recent technical parameter changes signal a clear shift towards bullish momentum. The convergence of daily moving averages, monthly MACD, and Bollinger Bands all point to a strengthening trend. While some weekly indicators remain mildly bearish or neutral, the longer-term outlook is decidedly positive.

Investors should note the stock’s strong relative performance against the Sensex and its upgraded Mojo Grade, which together suggest that Cholamandalam is well placed to capitalise on favourable sector dynamics and broader market recovery. However, as the stock approaches its 52-week high, monitoring for potential resistance and volume confirmation will be crucial to validate further upside.

Overall, the technical and fundamental signals favour a Buy rating, supported by a robust price momentum shift and improving market sentiment within the NBFC sector.

Unlock special upgrade rates for a limited period. Start Saving Now →