Cholamandalam Investment Gains 6.80%: 4 Key Factors Driving This Week’s Momentum

2 February 2026: Week Begins with a Dip Amid Broader Market Weakness

Cholamandalam Investment & Finance Company Ltd started the week at Rs.1,595.65, down 2.19% from the previous close, reflecting a cautious market mood. The stock’s decline was sharper than the Sensex’s 1.03% drop to 35,814.09, signalling initial pressure on the NBFC amid broader market volatility. Trading volume was moderate at 39,561 shares, indicating measured investor participation.

3 February 2026: Strong Gap Up and Intraday High Signal Renewed Buying Interest

The stock rebounded sharply on 3 February, opening with a 3.5% gap up and closing at Rs.1,695.95, a 6.29% gain on the day. Intraday, it surged to a high of Rs.1,736, marking an 8.8% rise from the prior close. This performance outpaced the Sensex’s 2.63% gain and the NBFC sector’s 3.55% rise, underscoring strong buying momentum. The gap up and sustained intraday strength reflected positive market sentiment, supported by the recent upgrade of the company’s Mojo Grade to Buy with a score of 71.0.

Technically, the stock traded above its 5-day, 100-day, and 200-day moving averages, signalling short- and long-term support, though it remained below the 20-day and 50-day averages, indicating some medium-term resistance. The high beta nature of the stock (adjusted beta 1.25) contributed to its pronounced price swings relative to the broader market.

4 February 2026: Renewed Momentum Amid Mixed Technical Signals

On 4 February, Cholamandalam continued its upward trajectory, closing at Rs.1,739.10, a 2.54% gain from the previous day. The stock traded within a range of Rs.1,651.45 to Rs.1,736.00, approaching its 52-week high of Rs.1,831.80. This gain outperformed the Sensex’s modest 0.37% rise, signalling sustained investor interest.

Technical indicators showed a shift from sideways to mildly bullish momentum. Daily moving averages turned positive, and Bollinger Bands on weekly and monthly charts indicated strong momentum. However, MACD and KST oscillators presented mixed signals, with weekly charts mildly bearish but monthly charts bullish. The Relative Strength Index (RSI) remained neutral, suggesting no immediate overbought conditions.

On-Balance Volume (OBV) analysis showed a mildly bearish weekly trend but a bullish monthly accumulation, reflecting cautious short-term volume flow amid longer-term investor confidence. Dow Theory assessments remained mildly bearish, indicating some caution in the broader market context.

5 February 2026: Minor Pullback on Low Volume

The stock experienced a slight decline on 5 February, closing at Rs.1,721.95, down 0.99% on very low volume of 6,090 shares. This minor pullback contrasted with the Sensex’s 0.53% drop, suggesting a modest correction within an overall positive weekly trend. The low volume indicates limited selling pressure, consistent with a consolidation phase following recent gains.

6 February 2026: Week Closes with a Modest Gain

Cholamandalam ended the week on a positive note, rising 1.18% to close at Rs.1,742.35. The Sensex also gained 0.10%, closing at 36,730.20. The stock’s weekly gain of 6.80% significantly outperformed the Sensex’s 1.51%, highlighting its relative strength amid a mixed market environment. Trading volume rebounded to 26,133 shares, supporting the upward move.

Daily Price Comparison: Cholamandalam vs Sensex (2–6 Feb 2026)

Key Takeaways

Outperformance and Momentum: Cholamandalam Investment & Finance Company Ltd outperformed the Sensex by 5.29% over the week, driven by a strong gap up and intraday highs on 3 February and renewed momentum on 4 February. The stock’s ability to sustain gains despite mixed technical signals highlights underlying strength.

Technical Indicators Mixed but Improving: The shift from sideways to mildly bullish momentum, supported by daily moving averages and Bollinger Bands, contrasts with some bearish signals from MACD and Dow Theory on weekly charts. This suggests a consolidation phase with potential for further upside if key resistance levels are breached.

Volatility and Volume Patterns: The stock’s high beta profile contributed to pronounced price swings, with volume spikes accompanying major moves on 3 and 4 February. The low volume pullback on 5 February indicates limited selling pressure, consistent with a healthy consolidation.

Rating Upgrade and Market Position: The MarketsMOJO upgrade to a Buy grade with a Mojo Score of 71.0 on 13 January 2026 reflects improved fundamentals and technical outlook, supporting the stock’s recent gains and relative strength within the NBFC sector.

Conclusion

Cholamandalam Investment & Finance Company Ltd demonstrated a robust weekly performance, gaining 6.80% and significantly outperforming the Sensex’s 1.51% rise. The week was marked by a strong gap up and intraday highs, signalling renewed investor confidence amid a cautiously optimistic technical backdrop. While some indicators suggest near-term consolidation, the overall trend remains constructive, supported by a recent rating upgrade and solid long-term fundamentals. Investors should monitor key technical levels and volume trends as the stock navigates this phase of momentum building within the NBFC sector.

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