Shriram Finance Ltd’s Volatile Week: -1.66% Amid Heavy Trading and New 52-Week High

2 February 2026: Intraday Low and Heavy Trading Amid Price Pressure

Shriram Finance opened the week under pressure, closing sharply lower at Rs.962.20, down 5.60% from the previous close. The stock touched an intraday low of Rs.961.5, marking a 3.56% drop intraday. This decline came despite the Sensex falling only 1.03%, indicating relative weakness in the stock. The day saw exceptionally high trading volumes, with over 8.1 million shares traded, translating into a turnover exceeding ₹7,757 crores, placing Shriram Finance among the most actively traded stocks by value.

Despite the heavy volume, the price action was skewed towards the lower end of the day’s range, signalling selling pressure. Delivery volumes increased by 17.08% compared to the five-day average, suggesting that while some investors were offloading shares, others were accumulating for the longer term. The stock traded below its 5-day and 20-day moving averages but remained above longer-term averages, indicating short-term bearish momentum amid medium-term support.

Additionally, the options market reflected bearish sentiment with heavy put option activity at strike prices near Rs.960 and Rs.970. Over 4,000 put contracts were traded, signalling increased hedging or speculative bets on further downside ahead of the 24 February expiry. This activity underscored investor caution amid sector headwinds and recent price weakness.

3 February 2026: Strong Reversal with New 52-Week High and Gap Up

The stock staged a remarkable recovery on 3 February, opening with a significant gap up of 4.61% and reaching a new 52-week high of Rs.1,044.4 intraday, an 8.54% increase from the prior close. This rally outpaced both the NBFC sector’s 3.86% gain and the Sensex’s 2.74% rise, highlighting renewed buying interest and positive momentum.

Technical indicators aligned with this bullish shift, as the stock traded above all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), signalling a strong upward trend. The Mojo Score remained at 72.0 with a Buy grade, reflecting improved fundamentals and market positioning. Institutional ownership stood at 68.52%, supporting the stock’s robust performance.

Fundamentally, Shriram Finance reported record quarterly figures with net sales of Rs.12,170.76 crore and net profit after tax of Rs.2,529.67 crore, underpinning investor confidence. The price-to-book ratio of 3 and PEG ratio of 1.5 suggest a premium valuation justified by growth prospects.

4 & 5 February 2026: Consolidation and Minor Pullbacks

Following the strong rally, Shriram Finance experienced a mild correction on 4 February, closing slightly down at Rs.998.80 (-0.17%) and continuing to trade below the 5-day and 20-day moving averages. Volume declined notably to 159,289 shares, indicating reduced trading interest amid consolidation.

On 5 February, the stock further eased to Rs.991.55 (-0.73%), with volumes dropping to 73,998 shares. The Sensex also declined by 0.53% on this day, reflecting a broader market pullback. The stock’s short-term momentum remained subdued, but it held above longer-term moving averages, suggesting the correction was contained within an overall positive trend.

6 February 2026: Week Closes with Modest Gain Amid Mixed Sentiment

On the final trading day of the week, Shriram Finance rebounded modestly, closing at Rs.1,002.40, up 1.09% on low volume of 67,529 shares. The Sensex gained a marginal 0.10%, indicating a cautious market environment. The stock’s recovery on the day helped limit weekly losses, but it still closed below the week’s opening price, reflecting the volatility experienced throughout the week.

Key Takeaways from the Week

Positive Signals: The stock’s ability to rebound sharply on 3 February and hit a new 52-week high of Rs.1,044.4 demonstrated strong underlying demand and resilience. Institutional ownership remains high at 68.52%, supporting stability. The upgraded Mojo Score of 72.0 with a Buy rating reflects improved fundamentals and market positioning. The company’s record quarterly results and consistent profitability underpin long-term growth prospects.

Cautionary Signals: Early-week price pressure and heavy put option activity indicate near-term bearish sentiment and hedging by investors. The stock’s trading below short-term moving averages for much of the week suggests short-term momentum challenges. Weekly performance lagged the Sensex by 3.17%, highlighting relative weakness amid broader market gains. Lower volumes during the latter half of the week may signal investor hesitation amid mixed signals.

Conclusion

Shriram Finance Ltd’s week was marked by significant volatility, with a sharp early-week decline followed by a strong midweek rally to new highs, before settling into a consolidation phase. The stock’s 1.66% weekly loss contrasted with a 1.51% gain in the Sensex, reflecting mixed investor sentiment amid sectoral challenges and macroeconomic uncertainties. Heavy trading volumes and elevated put option activity underscored cautious positioning, while fundamental strength and institutional backing provided a solid foundation.

Technical indicators suggest the stock is navigating a short-term correction within a longer-term uptrend, with key moving averages offering support. Investors and market watchers should monitor price action around these levels and option market dynamics as the 24 February expiry approaches. The balance of strong fundamentals against near-term caution points to a nuanced outlook for Shriram Finance in the coming weeks.

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