Technical Analysis

Cholamandalam Investment & Finance Company (₹312.9): Buy

Yoganand D BL Research Bureau | Updated on December 13, 2019 Published on December 13, 2019

The stock of Cholamandalam Investment and Finance Company gained 3.3 per cent with above average volume on Thursday, resuming the medium-term uptrend. It has been in a medium-term uptrend since it took support at ₹245 in a late July this year.

The stock has been forming higher peaks and troughs since then. In mid-October, the stock took support at ₹270, and as its 200-DMA had also provided base, it continued to trend upwards. Since then, it has been in a short-term uptrend.

The stock trades well above its 50-and 200-day moving averages. The daily relative strength index is moving higher in the neutral region towards the bullish zone and the weekly RSI features in the neutral region. Besides, the daily price rate of change indicator has entered the positive territory implying buying interest. Immediate support at ₹300 cushioned the stock recently.

Overall, the short-term outlook is bullish. The stock can extend the uptrend and reach the price targets of ₹326 and ₹332 in the ensuing trading sessions. Traders with a short-term view can buy with a stop-loss at ₹305.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on December 13, 2019
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