Key Events This Week
5 Jan: Stock opens at Rs.1,773.40, down 0.40%
6 Jan: New 52-week and all-time high at Rs.1,831.8
7 Jan: Price retreats amid lower volume, closes Rs.1,785.75 (-1.09%)
8 Jan: Further decline to Rs.1,755.40 (-1.70%) on weak market
9 Jan: Heavy volume selling pushes price down to Rs.1,719.25 (-2.06%)
Monday, 5 January 2026: Modest Opening Amid Market Weakness
Cholamandalam Investment & Finance Company Ltd opened the week at Rs.1,773.40, down 0.40% from the previous Friday’s close of Rs.1,780.55. The stock’s decline was in line with the broader market, as the Sensex fell 0.18% to 37,730.95. Trading volume was moderate at 31,055 shares, reflecting cautious investor sentiment ahead of the week’s key events. The stock remained above its recent support levels but showed early signs of volatility.
Tuesday, 6 January 2026: New 52-Week and All-Time High Amid Strong Buying
On 6 January, Cholamandalam Investment & Finance Company Ltd surged to a new 52-week and all-time high of Rs.1,831.8, marking a 3.29% intraday gain. The stock closed at Rs.1,805.40, up 1.80% on the day, significantly outperforming the Sensex which declined 0.19% to 37,657.70. This strong performance was driven by robust buying momentum and positive technical signals, with the stock trading above all key moving averages including the 5-day, 20-day, and 50-day averages.
The surge reflected investor confidence in the company’s fundamentals, supported by a MarketsMOJO Mojo Score of 72.0 and a Buy rating. Institutional holdings remain strong at 44.12%, underscoring sustained interest from long-term investors. Despite the broader market’s subdued tone, Cholamandalam’s relative strength was evident as it outpaced its NBFC sector peers by over 2%.
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Wednesday, 7 January 2026: Profit Booking and Volume Decline
Following the previous day’s rally, the stock retreated to Rs.1,785.75, down 1.09%, on lower volume of 22,259 shares. The decline came despite a marginally positive Sensex close at 37,669.63 (+0.03%). This suggests some profit booking by investors after the sharp gains on Tuesday. The stock remained above key moving averages but showed signs of short-term consolidation as traders digested the recent highs.
Thursday, 8 January 2026: Continued Weakness Amid Broader Market Sell-Off
Cholamandalam Investment & Finance Company Ltd extended its decline to Rs.1,755.40, down 1.70%, as the Sensex plunged 1.41% to 37,137.33. The stock’s fall was in line with the broader market weakness, reflecting risk-off sentiment among investors. Volume declined further to 16,635 shares, indicating subdued trading interest. The stock’s technical indicators showed increasing pressure, with the price nearing its 20-day moving average support.
Friday, 9 January 2026: Heavy Selling Pressure on High Volume
The week ended with a sharp decline to Rs.1,719.25, down 2.06% on the day, on heavy volume of 126,559 shares. This marked the largest single-day volume of the week, signalling significant selling pressure. The Sensex also fell 0.89% to 36,807.62, continuing the negative trend. The stock’s weekly performance closed at a 3.44% loss, though it still outperformed the Sensex’s 2.62% drop. The heavy volume suggests institutional or large investor participation in the sell-off, possibly taking profits after the recent rally.
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Daily Price Comparison: Cholamandalam Investment & Finance Company Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.1,773.40 | -0.40% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.1,805.40 | +1.80% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.1,785.75 | -1.09% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.1,755.40 | -1.70% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.1,719.25 | -2.06% | 36,807.62 | -0.89% |
Key Takeaways from the Week
Positive Signals: The stock demonstrated resilience by outperforming the Sensex’s decline by 0.82 percentage points over the week, supported by a strong intraday surge to a new 52-week high on 6 January. The technical positioning above all major moving averages and a robust Mojo Score of 72.0 with a Buy rating reflect underlying strength and investor confidence.
Cautionary Signals: The latter half of the week saw consistent selling pressure, culminating in a heavy volume decline on Friday. The stock’s retreat from its peak and the sizeable volume on the final day suggest profit-taking and potential short-term weakness. The broader market’s negative trend also weighed on sentiment, increasing downside risk in the near term.
Valuation Considerations: Despite strong fundamentals, Cholamandalam Investment & Finance Company Ltd trades at a premium valuation with a Price to Book Value of 5.8 and a PEG ratio of 1.6. This premium pricing may limit upside in volatile market conditions and warrants close monitoring of earnings growth and sector dynamics.
Conclusion
Cholamandalam Investment & Finance Company Ltd’s week was characterised by a sharp midweek rally to new highs followed by a steady decline amid broader market weakness. While the stock outperformed the Sensex, the 3.44% weekly loss and heavy selling volume on Friday highlight near-term challenges. Investors should weigh the company’s strong fundamentals and technical strength against the current profit-taking and valuation premium. The coming weeks will be critical to assess whether the stock can sustain its momentum or enter a consolidation phase.
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