Cholamandalam Investment & Finance Sees High-Value Trading Amid Volatility

Trading Activity and Price Movement

On 26 February, Cholamandalam Investment & Finance opened at ₹1,754.90, marginally above its previous close of ₹1,754.50. However, the stock faced significant selling pressure during the session, hitting an intraday low of ₹1,628.00, a steep drop of 7.21% from the previous close. The day’s high was ₹1,774.60, indicating a wide trading range and heightened volatility. The last traded price (LTP) stood at ₹1,704.00 as of 10:40 AM, reflecting a day decline of 2.90%.

The weighted average price for the day was closer to the low end of the range, signalling that the bulk of the volume was executed near the lower price levels. This suggests that sellers dominated the session, pushing prices down despite intermittent buying interest.

Volatility and Moving Averages

The stock exhibited an intraday volatility of 5.49%, calculated from the weighted average price, underscoring the heightened uncertainty among traders. Cholamandalam’s price remains above its 200-day moving average, a long-term bullish indicator, but currently trades below its 5-day, 20-day, 50-day, and 100-day moving averages. This technical setup indicates a short- to medium-term downtrend within an overall long-term positive trend, reflecting a phase of consolidation or correction.

Institutional Interest and Investor Participation

Delivery volume on 25 February was recorded at 5.48 lakh shares, but this figure has declined by 22.58% compared to the five-day average delivery volume, signalling a reduction in investor participation. The dip in delivery volumes suggests that fewer investors are holding shares for the long term, possibly due to profit booking or cautious sentiment amid the recent price volatility.

Despite this, the stock remains liquid enough to support trades up to ₹3.66 crores based on 2% of the five-day average traded value, making it a viable option for institutional investors and high-volume traders.

Sector and Market Comparison

Cholamandalam Investment & Finance operates within the Non Banking Financial Company (NBFC) sector, a segment that has shown resilience amid fluctuating economic conditions. However, on the day in question, the stock underperformed its sector benchmark by 3.57%, while the sector itself posted a modest gain of 0.11%. The broader Sensex index advanced by 0.21%, highlighting a divergence between Cholamandalam’s performance and the overall market trend.

This underperformance may be attributed to profit-taking or sector rotation by investors, as well as the stock’s recent run of three consecutive days of gains prior to the decline. The reversal in trend suggests a short-term correction, which could offer buying opportunities if supported by fundamentals.

Fundamental and Quality Assessment

Cholamandalam Investment & Finance is classified as a Large Cap company with a market capitalisation of approximately ₹1,51,020 crores. The company’s Mojo Score stands at 71.0, reflecting a strong buy recommendation, an upgrade from its previous Hold grade as of 13 January 2026. This upgrade signals improved confidence in the company’s fundamentals and growth prospects.

The company holds a Market Cap Grade of 1, indicating its position among the top-tier large-cap stocks. Such grading is significant for institutional investors seeking quality and stability in their portfolios. The upgrade in Mojo Grade also suggests that recent financial results, asset quality, and earnings growth have met or exceeded expectations, reinforcing the stock’s attractiveness despite short-term price fluctuations.

Outlook and Investor Considerations

While the stock’s recent volatility and intraday decline may cause concern for some investors, the underlying fundamentals and liquidity profile remain robust. The current price correction could be viewed as a consolidation phase within a broader uptrend, especially given the stock’s position above the 200-day moving average and its strong Mojo Score.

Investors should monitor institutional buying patterns and delivery volumes closely, as a sustained increase in participation could signal renewed confidence. Additionally, tracking the stock’s movement relative to its short-term moving averages will provide insights into potential trend reversals or continuation.

Institutional and Large Order Flow Dynamics

Cholamandalam’s high-value trading activity is indicative of significant institutional interest. The total traded value of ₹595.63 crores on a single day places it among the top equity stocks by value turnover, attracting attention from mutual funds, insurance companies, and foreign portfolio investors. Large order flows often reflect strategic positioning ahead of quarterly results or macroeconomic developments impacting the NBFC sector.

Given the company’s strong market capitalisation and liquidity, it remains a preferred choice for large block trades and portfolio rebalancing. The recent downgrade in short-term momentum may prompt some institutions to adjust holdings, but the overall positive grading and fundamental strength support a constructive medium- to long-term outlook.

Conclusion

Cholamandalam Investment & Finance Company Ltd’s trading session on 26 February 2026 was marked by high volume and value turnover, coupled with notable price volatility and a short-term correction. Despite underperforming its sector and the broader market indices, the stock’s upgraded Mojo Grade and strong fundamental metrics underpin its appeal as a quality large-cap NBFC stock.

Investors should weigh the current price weakness against the company’s robust liquidity, institutional interest, and long-term technical indicators. The stock’s performance in the coming sessions will be crucial in determining whether the recent dip represents a buying opportunity or a deeper correction phase.

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