CHOLAFIN

Fundamental View- Cholamandalam Finance is a leading NBFC driving financial inclusion in rural and semi-urban India through diversified lending, strong asset quality, and tech-driven operations. Technical View- The stock is currently showing positive signs on the daily chart after taking strong support near its 55-day EMA. Throughout the week, it has been trading in a narrow range between the 14 and 55-day EMA, indicating consolidation with a bullish bias. Today, the stock opened at 1584.80, touched a high of 1599.00, and closed lower at 1544.40, but importantly, it did not break its recent short-term support near 1525 — instead, it made a higher low of 1536.10. This suggests that the downside is being protected and buyers are active at lower levels. On the hourly chart, a double bottom formation is visible, which usually signals a potential reversal. Currently trading around ₹1550, the stock seems to be attempting a recovery after yesterday’s dip. Other NBFC sector stocks like Jio Financial also showed strength today, further adding sector-wide confidence. From a technical perspective, if the stock sustains above 1535–1540, it may attempt to retest its recent high around 1600. A breakout above this level could lead to further upside toward ₹1650 in the coming sessions. On the fundamental side, the company delivered strong performance in FY25 with consistent growth, stable asset quality, and healthy margins. Looking ahead, FY26 is also expected to be promising given strong sector tailwinds and improving macro conditions. A stop loss of ₹1490 can be maintained for short to medium-term traders. Overall, the stock remains attractive both technically and fundamentally.