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Cholamandalam Investment & Finance: RSI in bullish zone, potential for 20% growth

Cholamandalam Investment & Finance Co. Ltd

The company specializes in delivering financial services, operating across distinct segments encompassing Vehicle Finance Loans, Loan Against Property, Home Loans, and Other Loans. The Vehicle Finance Loans category extends financial support to customers for new/used vehicles, tractors, construction equipment, and automobile dealer financing. Meanwhile, Home Loans involve financing for residential property acquisition, while Loan Against Property offers loans against immovable assets. The Other Loans segment encompasses loans against shares and unsecured loans. Founded on August 17, 1978, the company’s headquarters are situated in Chennai, India. Cholamandalam Investment & Finance Company stands as a leading diversified non-banking finance entity in India, specializing in vehicle finance, home loans, and Loan against property.

A recent assessment of Cholamandalam Investment & Finance stock performance, spanning from September 15, 2023 (at Rs 1240) to September 27, 2023 (at Rs 1205.40), unveils an intriguing technical continuation price pattern known as the Bullish Flag. This pattern hints at the potential for a substantial price movement in the near term, with consolidation reinforced by the 13-day moving average (DMA). In today’s trading session, Chola Finance took the center stage, surging impressively by over 3% while witnessing trading volumes surpassing 1 million shares, indicating a breakout from the aforementioned technical price pattern.


The most recent data indicates that Chola Finance has breached the previous swing high of Rs 1240 and achieved an intraday high of Rs 1249.45. Closing above Rs 1240 will solidify this breakout, offering a compelling opportunity for discerning long-term investors. The projected target for this pattern hovers around Rs 1490, implying a substantial surge of more than 20% from the breakout point.

Augmenting this optimistic outlook is the 14-week Relative Strength Index (RSI), comfortably positioned within the bullish zone, hovering around 69.22. This underscores the company’s favorable standing. Bolstered by robust momentum indicators represented by short-term key moving averages, both momentum traders and long-term investors find compelling reasons to consider Chola Finance for strategic inclusion in their forthcoming trading strategies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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