Technical Trend Overview and Price Movement
The stock closed at ₹1,702.00 on 1 January 2026, marginally down by 0.01% from the previous close of ₹1,702.15. Intraday price action saw a high of ₹1,710.00 and a low of ₹1,687.15, indicating a relatively tight trading range. The 52-week high stands at ₹1,780.90, while the 52-week low is ₹1,169.05, highlighting significant appreciation over the past year.
The technical trend has shifted from bullish to mildly bullish, signalling a moderation in upward momentum. This subtle change suggests that while the stock retains positive undercurrents, investors should be mindful of potential volatility or consolidation phases ahead.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bearish, indicating some short-term weakening in momentum. However, the monthly MACD remains bullish, reflecting sustained longer-term strength. This divergence between weekly and monthly MACD readings suggests that while short-term momentum may be cooling, the broader trend remains intact.
The Know Sure Thing (KST) indicator supports this view, showing bullish signals on both weekly and monthly timeframes. This reinforces the notion that despite short-term fluctuations, the stock’s momentum is fundamentally positive over extended periods.
RSI and Overbought/Oversold Conditions
The Relative Strength Index (RSI) currently offers no definitive signal on either weekly or monthly charts. This neutral RSI reading implies that the stock is neither overbought nor oversold, suggesting a balanced demand-supply dynamic. Investors should watch for any RSI divergence or movement beyond typical thresholds (above 70 or below 30) to anticipate potential trend reversals or acceleration.
Moving Averages and Bollinger Bands
Daily moving averages indicate a mildly bullish stance, with short-term averages likely positioned above longer-term averages, signalling a positive but cautious momentum. Bollinger Bands add further nuance: weekly bands are bullish, suggesting price strength and potential upward volatility, while monthly bands are mildly bullish, indicating moderate upward pressure over a longer horizon.
These moving average and volatility band readings collectively point to a scenario where the stock is maintaining upward momentum but may encounter resistance or consolidation near current levels.
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Volume and On-Balance Volume (OBV) Analysis
On-Balance Volume (OBV) readings are mildly bullish on a weekly basis but mildly bearish monthly, indicating some divergence in volume trends. The weekly OBV suggests accumulation or buying interest in the short term, while the monthly OBV hints at some distribution or selling pressure over the longer term. This mixed volume profile warrants close monitoring, as volume often precedes price moves.
Dow Theory and Market Sentiment
According to Dow Theory, the weekly trend is mildly bearish, contrasting with a bullish monthly trend. This again highlights the dichotomy between short-term caution and longer-term optimism. The mildly bearish weekly Dow Theory signal may reflect profit-taking or consolidation, while the monthly bullishness aligns with the stock’s strong fundamental backdrop and sectoral tailwinds.
Comparative Returns and Market Capitalisation
Cholamandalam Investment & Finance Company Ltd has delivered impressive returns relative to the Sensex benchmark. Year-to-date and one-year returns stand at 43.44%, significantly outperforming the Sensex’s 9.06% over the same period. Over three years, the stock has surged 135.39%, compared to the Sensex’s 40.07%, and over five years, it has appreciated by 338.83%, dwarfing the Sensex’s 78.47%. The ten-year return is particularly striking at 1,225.75%, compared to the Sensex’s 226.30%.
The company’s market capitalisation grade is rated 1, indicating a large-cap status with strong liquidity and institutional interest. This robust market cap profile supports the stock’s technical resilience and investor confidence.
Mojo Score Upgrade and Analyst Ratings
MarketsMOJO has upgraded Cholamandalam Investment & Finance Company Ltd’s Mojo Grade from Hold to Buy as of 30 December 2025, reflecting improved technical and fundamental outlooks. The current Mojo Score stands at 72.0, signalling a favourable risk-reward profile. This upgrade is consistent with the mildly bullish technical trend and strong long-term returns, providing investors with a clear directional bias.
Investment Implications and Outlook
While the stock’s technical indicators present a mixed but generally positive picture, investors should be mindful of the mildly bearish short-term signals from MACD and Dow Theory. The absence of RSI extremes suggests the stock is not overextended, allowing room for further appreciation if buying interest resumes.
Given the strong monthly momentum indicators and impressive historical returns, Cholamandalam Investment & Finance Company Ltd remains an attractive proposition within the NBFC sector. However, the mildly bullish technical trend advises a cautious approach, with attention to potential consolidation or pullbacks near resistance levels around ₹1,780.90.
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Sector Context and Broader Market Considerations
Operating within the NBFC sector, Cholamandalam Investment & Finance Company Ltd benefits from a favourable regulatory environment and growing credit demand. The sector has witnessed increased investor interest due to improving asset quality and robust loan growth prospects. However, macroeconomic factors such as interest rate fluctuations and credit risk remain pertinent.
Against this backdrop, the stock’s technical signals suggest it is well-positioned to capitalise on sectoral tailwinds, provided it navigates short-term volatility effectively. Investors should consider the stock’s technical momentum in conjunction with fundamental developments and broader market trends.
Conclusion
Cholamandalam Investment & Finance Company Ltd’s recent technical parameter changes reveal a shift to a mildly bullish momentum, supported by strong monthly MACD and KST indicators, alongside a neutral RSI. While weekly indicators show some caution, the overall trend remains positive, bolstered by impressive long-term returns and a recent upgrade to a Buy rating by MarketsMOJO.
Investors are advised to monitor short-term technical signals closely, particularly the mildly bearish weekly MACD and Dow Theory readings, while recognising the stock’s solid fundamentals and sectoral positioning. This balanced perspective will help in making informed decisions amid evolving market dynamics.
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