Technical Trend Overview and Price Movement
As of 3 February 2026, Cholamandalam Investment & Finance Company Ltd (stock code 972395) closed at ₹1,595.95, up from the previous close of ₹1,578.70. The stock’s intraday range was between ₹1,526.15 and ₹1,598.65, indicating some volatility but a positive close. The 52-week high stands at ₹1,831.80, while the 52-week low is ₹1,227.20, placing the current price closer to the upper end of its annual range.
The recent technical trend has shifted from mildly bullish to sideways, signalling a pause or consolidation phase after a period of upward momentum. This change is reflected in several key technical indicators, which provide a nuanced view of the stock’s near-term prospects.
MACD and Momentum Oscillators Signal Caution
The Moving Average Convergence Divergence (MACD) indicator, a widely used momentum oscillator, shows mildly bearish signals on both weekly and monthly timeframes. This suggests that the upward momentum that supported the stock in recent months may be weakening. The MACD’s bearish crossover on these timeframes indicates a potential slowdown in buying pressure, which could lead to sideways or downward price movement in the near term.
Similarly, the Know Sure Thing (KST) indicator aligns with this view, showing mildly bearish readings on weekly and monthly charts. The KST’s decline often precedes price corrections, reinforcing the cautionary stance suggested by the MACD.
RSI and Bollinger Bands Reflect Mixed Sentiment
The Relative Strength Index (RSI) currently shows no clear signal on weekly and monthly charts, hovering in a neutral zone. This lack of directional bias suggests that the stock is neither overbought nor oversold, consistent with the sideways trend observed.
Bollinger Bands, which measure price volatility and potential breakout points, present a contrasting picture. On the weekly timeframe, the bands indicate a bearish stance, implying that price volatility may be contracting with a downward bias. However, on the monthly timeframe, Bollinger Bands are mildly bullish, hinting at longer-term support for the stock’s price.
Moving Averages and Dow Theory Insights
Daily moving averages remain mildly bullish, signalling that short-term price momentum is still positive. This is an encouraging sign for traders looking for near-term opportunities, as the stock price remains above key moving averages, which often act as dynamic support levels.
Conversely, Dow Theory assessments on weekly and monthly charts are mildly bearish, indicating that the broader trend may be under pressure. Dow Theory’s emphasis on trend confirmation suggests that the stock has yet to establish a strong, sustained upward trend at these longer timeframes.
On-Balance Volume and Market Cap Considerations
On-Balance Volume (OBV) readings are mildly bearish on the weekly scale but mildly bullish monthly, reflecting a divergence between short-term selling pressure and longer-term accumulation. This divergence often precedes a significant price move, underscoring the importance of monitoring volume trends closely.
Cholamandalam’s market capitalisation grade remains at 1, indicating a large-cap status with substantial market presence. This provides the stock with a degree of stability relative to smaller peers in the Non Banking Financial Company (NBFC) sector.
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Comparative Returns Highlight Long-Term Strength
Despite recent technical caution, Cholamandalam Investment & Finance Company Ltd has delivered impressive returns over longer periods, significantly outperforming the Sensex benchmark. The stock’s 1-year return stands at 25.82%, compared to Sensex’s 5.37%. Over three years, the stock has surged 105.97%, vastly exceeding the Sensex’s 36.26% gain. The five-year and ten-year returns are even more striking, at 263.42% and 1,134.20% respectively, compared to Sensex returns of 64.00% and 232.80% over the same periods.
These figures underscore the company’s robust growth trajectory and resilience, factors that continue to attract long-term investors despite short-term technical fluctuations.
Mojo Score Upgrade Reflects Improved Outlook
MarketsMOJO recently upgraded Cholamandalam’s Mojo Grade from Hold to Buy on 13 January 2026, reflecting an improved fundamental and technical outlook. The current Mojo Score of 71.0 supports this positive stance, signalling that the stock is favourably positioned for future gains. This upgrade is significant as it aligns with the company’s strong financial metrics and sectoral leadership within the NBFC space.
Sector and Industry Context
Operating within the Non Banking Financial Company (NBFC) sector, Cholamandalam faces sector-specific challenges such as regulatory scrutiny and interest rate fluctuations. However, its large-cap status and consistent earnings growth provide a buffer against sector volatility. The company’s ability to maintain a mildly bullish daily moving average trend amidst broader sideways momentum highlights its relative strength within the NBFC industry.
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Investor Takeaway and Outlook
Cholamandalam Investment & Finance Company Ltd’s recent technical momentum shift from mildly bullish to sideways suggests a period of consolidation. While short-term indicators such as MACD and KST point to mild bearishness, daily moving averages and monthly Bollinger Bands offer some support for a potential rebound. The neutral RSI readings further reinforce the likelihood of a pause rather than a sharp reversal.
Long-term investors may find comfort in the company’s strong historical returns and recent upgrade to a Buy rating by MarketsMOJO. However, traders should remain cautious and monitor key technical levels, particularly the stock’s ability to sustain above ₹1,580–₹1,600 support zones. A decisive move above the 52-week high of ₹1,831.80 would signal renewed bullish momentum, while a drop below ₹1,526 could indicate deeper correction risks.
Given the mixed technical signals and sector dynamics, a balanced approach combining fundamental strength with technical vigilance is advisable for investors considering exposure to Cholamandalam Investment & Finance Company Ltd.
Summary of Technical Indicators
- MACD: Weekly and Monthly – Mildly Bearish
- RSI: Weekly and Monthly – Neutral (No Signal)
- Bollinger Bands: Weekly – Bearish; Monthly – Mildly Bullish
- Moving Averages (Daily) – Mildly Bullish
- KST: Weekly and Monthly – Mildly Bearish
- Dow Theory: Weekly and Monthly – Mildly Bearish
- OBV: Weekly – Mildly Bearish; Monthly – Mildly Bullish
Price and Return Metrics
- Current Price: ₹1,595.95
- Previous Close: ₹1,578.70
- 52-Week High: ₹1,831.80
- 52-Week Low: ₹1,227.20
- Day Change: +1.09%
- 1 Week Return: -2.84% vs Sensex +0.16%
- 1 Month Return: -10.37% vs Sensex -4.78%
- Year-to-Date Return: -6.24% vs Sensex -4.17%
- 1 Year Return: +25.82% vs Sensex +5.37%
- 3 Year Return: +105.97% vs Sensex +36.26%
- 5 Year Return: +263.42% vs Sensex +64.00%
- 10 Year Return: +1,134.20% vs Sensex +232.80%
Conclusion
Cholamandalam Investment & Finance Company Ltd’s technical landscape is currently characterised by a cautious pause following a strong multi-year rally. The interplay of mildly bearish momentum indicators and supportive moving averages suggests a consolidation phase rather than a definitive trend reversal. Investors should weigh the company’s robust fundamentals and long-term growth prospects against the short-term technical signals to make informed decisions.
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