Why Is Cholamandalam Investment Turning Bullish After Its Resistance Breakout?
The stock of Cholamandalam Investment and Finance Company has been in a consistent uptrend since early September. After rebounding from its strong support zone of ₹1,415, it recently broke out of a key resistance range between ₹1,640 and ₹1,650 — a barrier that had capped bullish momentum for over a year.
According to technical analysis, this breakout signals renewed bullish strength, confirming a medium-term uptrend. The stock has delivered steady returns with higher highs and higher lows on the chart, reinforcing investor confidence in the counter’s performance.
Traders looking for fresh opportunities can stay updated through our Nifty Expiry Tip and BankNifty Intraday Tip for similar short-term setups.
Cholamandalam’s current momentum suggests potential upside toward ₹1,850 in the medium term. Analysts recommend accumulating on any dips near ₹1,620 — its 21-day moving average — with a stop-loss at ₹1,550 to manage risk effectively.
The strategy focuses on scaling positions gradually. Once the stock moves past ₹1,750 and ₹1,800, traders are advised to revise stop-loss levels to ₹1,680 and ₹1,750 respectively. Booking profits around ₹1,850 remains the ideal exit point as per the technical setup.
This disciplined approach offers a balanced risk-reward ratio. Given the strong recovery in the financial sector and steady credit demand, midcap NBFCs like Cholamandalam are likely to remain resilient. The company’s long-term growth fundamentals also complement its near-term technical strength.
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The broader trend in Cholamandalam continues to support accumulation on dips as technical indicators remain positive. A decisive close above ₹1,700 could open the next leg toward ₹1,850, validating this breakout as a medium-term opportunity for investors.
Investor Takeaway:
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that the stock’s breakout beyond ₹1,650 is a positive signal for continued bullish momentum. Investors can consider partial profit booking near ₹1,850 while keeping trailing stops tight for capital protection. Read more expert insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
