Cholamandalam Investment and Finance Company Limited (CHOLAFIN) Stock - Complete Technical Analysis - Nov 18, 2024

Cholamandalam Investment & Finance (CHOLAFIN) Stock Analysis Support, Resistance & Key Indicators

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) is currently trading at around 1,243, experiencing a notable drop from its 52-week high of 1,652. The stock shows resistance near 1,380, with support levels found near its 52-week low of 1,011. The Average Directional Index (ADX) indicates strong momentum in the market, while the Relative Strength Index (RSI) at 34.7 suggests the stock is oversold and may be due for a rebound. Despite a bearish MACD reading of -62.85 and a Momentum indicator of -40.4, which indicate downward pressure, there are indications of potential short-term reversals, especially if the stock reaches support near 1,241-1,243.

Key moving averages show the stock trading below crucial short-term resistance levels such as the 10-day and 20-day EMAs, with the 50-day EMA acting as strong resistance. The 200-day SMA at 1,312 serves as a critical long-term support zone. The Average True Range (ATR) indicates high volatility, with possible price swings, providing opportunities for traders focused on shorter-term price movements. If CHOLAFIN manages to break through resistance at 1,380, it could see a move toward 1,400, but failure to hold support could see it testing levels closer to its 52-week low.

In conclusion, traders should watch for potential support at 1,240-1,243, with a risk of further declines if the price fails to bounce. However, a reversal from oversold conditions could push the stock toward resistance near 1,380-1,420 in the near term.