Cholamandalam Investment and Finance Company Limited (CHOLAFIN) Stock - Complete Technical Analysis - Nov 07, 2024

Cholamandalam (CHOLAFIN) Stock Technical Analysis: Key Support & Resistance Levels Trend Insights

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Cholamandalam Investment and Finance Company Limited (CHOLAFIN) has been facing a challenging period, trading at 1,283, which is around 22% below its 52-week high. The stock's recent behavior shows bearish candlestick patterns, including a bearish engulfing and an evening star formation, signaling possible continuation of downward momentum. The Average Directional Index (ADX) is high, indicating strong directional movement, but the stock's Relative Strength Index (RSI) suggests it may be oversold, which could signal a potential reversal or temporary relief rally.

Traders should be cautious around current levels as the stock has broken below important support at 1,300, with 1,267 being a key short-term support level. The next significant support level is 1,240. The immediate resistance is at 1,320, with further resistance seen around 1,350. The Exponential Moving Averages (EMA) and Simple Moving Averages (SMA) show that the stock is currently in a downtrend, with the short-term moving averages below the longer-term ones.

The stock's volatility is moderate, with an ATR value of around 56. The negative momentum in the market, combined with the technical indicators, suggests that the stock might continue to face selling pressure unless it finds support at 1,267. On the upside, the stock could encounter resistance near 1,320. Traders looking for short-term trades might want to focus on these levels for potential reversal or continuation trades.