Technical Trend Overview and Price Movement
The stock closed at ₹1,706.00 on 17 Feb 2026, marginally down by 0.17% from the previous close of ₹1,708.90. Intraday price fluctuations ranged between ₹1,684.00 and ₹1,720.50, indicating moderate volatility within a relatively narrow band. The 52-week high stands at ₹1,831.80, while the 52-week low is ₹1,333.90, positioning the current price closer to the upper end of its annual range.
Technically, the overall trend has softened from a strong bullish to a mildly bullish posture. This subtle shift suggests that while upward momentum remains intact, caution is warranted as the stock faces resistance near its recent highs.
MACD Signals: Divergent Weekly and Monthly Perspectives
The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On a weekly basis, the MACD is mildly bearish, signalling a potential short-term weakening in momentum. This could be attributed to recent price consolidations and profit-taking activities. Conversely, the monthly MACD remains bullish, reflecting sustained longer-term strength in the stock’s price trajectory.
This divergence between weekly and monthly MACD readings highlights a transitional phase where short-term corrections may occur without undermining the broader uptrend.
RSI and Bollinger Bands: Stability Amidst Sideways Movement
The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This suggests the stock is neither overbought nor oversold, supporting the notion of a consolidation phase.
Bollinger Bands further corroborate this view. Weekly Bollinger Bands indicate sideways movement, reflecting price stabilisation within a defined range. However, monthly Bollinger Bands maintain a bullish stance, implying that volatility remains controlled and the stock could be poised for a breakout if momentum picks up.
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Moving Averages and KST: Daily Bullishness Tempered by Weekly Caution
Daily moving averages continue to signal bullish momentum, with the stock price comfortably above key short- and medium-term averages. This suggests that the immediate trend remains positive, supporting potential upward price movement in the near term.
However, the Know Sure Thing (KST) indicator presents a more cautious outlook. Weekly KST is mildly bearish, indicating some short-term momentum loss, while the monthly KST remains bullish, reinforcing the longer-term uptrend. This dichotomy suggests that while the stock may experience short-term pauses or pullbacks, the overall trajectory remains constructive.
Dow Theory and On-Balance Volume (OBV): Mixed Signals Reflect Consolidation
According to Dow Theory, the weekly trend is mildly bullish, signalling that the stock is still in an upward phase on a shorter timeframe. Conversely, the monthly Dow Theory reading is mildly bearish, hinting at potential longer-term caution or a phase of consolidation.
On-Balance Volume (OBV) analysis shows no clear trend on the weekly chart, indicating a lack of strong buying or selling pressure recently. The monthly OBV is mildly bullish, suggesting that accumulation may be occurring over a longer horizon, which could support future price appreciation.
Comparative Returns: Cholamandalam Outpaces Sensex Over Medium and Long Term
Cholamandalam Investment & Finance Company Ltd has demonstrated robust returns relative to the benchmark Sensex. Over the past week, the stock declined by 3.65%, underperforming the Sensex’s 0.94% drop. However, over longer periods, the stock has significantly outperformed:
- 1 Month: +0.39% vs Sensex -0.35%
- Year-to-Date: +0.22% vs Sensex -2.28%
- 1 Year: +24.11% vs Sensex +9.66%
- 3 Years: +118.10% vs Sensex +35.81%
- 5 Years: +223.72% vs Sensex +59.83%
- 10 Years: +1168.02% vs Sensex +259.08%
This outperformance underscores the company’s strong growth trajectory and resilience within the NBFC sector, making it a compelling consideration for long-term investors.
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Mojo Score and Grade Upgrade: Positive Signal for Investors
MarketsMOJO has upgraded Cholamandalam Investment & Finance Company Ltd’s Mojo Grade from Hold to Buy as of 13 Jan 2026, reflecting improved confidence in the stock’s prospects. The current Mojo Score stands at 71.0, indicating a favourable risk-reward profile. The company holds a Market Cap Grade of 1, denoting its strong market capitalisation relative to peers.
This upgrade aligns with the technical indicators’ mildly bullish stance and the company’s solid fundamental performance, reinforcing the stock’s appeal for investors seeking exposure to the NBFC sector.
Investment Implications and Outlook
While short-term technical indicators such as weekly MACD and KST suggest some caution, the broader monthly signals and daily moving averages maintain a positive outlook. The stock’s consolidation phase, as indicated by neutral RSI and sideways Bollinger Bands on weekly charts, may be a healthy pause before a potential breakout.
Investors should monitor key support levels near ₹1,680 and resistance around ₹1,720 to gauge momentum shifts. Given the company’s strong long-term returns and recent upgrade by MarketsMOJO, Cholamandalam Investment & Finance Company Ltd remains a noteworthy candidate for accumulation, particularly for those with a medium to long-term investment horizon.
Risks and Considerations
Potential risks include sector-specific challenges such as regulatory changes impacting NBFCs, interest rate fluctuations, and macroeconomic headwinds that could affect credit demand and asset quality. Additionally, the mild bearish signals on weekly technicals warrant vigilance for any signs of sustained downward momentum.
Prudent investors should balance these risks against the stock’s demonstrated resilience and technical signals suggesting a cautiously optimistic outlook.
Conclusion
Cholamandalam Investment & Finance Company Ltd’s recent technical parameter changes reflect a transition to a mildly bullish phase, supported by strong monthly momentum indicators and a recent upgrade in Mojo Grade. While short-term caution is advised due to mixed weekly signals, the stock’s long-term performance and fundamental strength position it well for potential gains. Investors should watch for confirmation of breakout signals while considering the company’s robust track record within the NBFC sector.
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