Cholamandalam Investment Technical Analysis #94: Buy | Target Rs 312 | Arijit Banerjee

Buy Range288 – 293
Target312 – 315
Duration12 – 15 Trading Sessions
Potential Return^6 – 8%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
293BUY288 – 293312 – 31528012 – 15 Trading Sessions6 – 8%

# CMP on Oct 24, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 303.
^ The returns are calculated based on CMP#


Cholamandalam Invest and Finance Limited is a non-banking financial company provides commercial vehicle loans, two-wheeler loans, construction equipment loans, home loans, business loans for SME, refinance loans, agricultural loans etc. The company also offers health and general insurances, mutual fund, wealth management, PMS, ETF and SIP services, bonds, Demat and depository participant services. As of March 2019, the company has 911 operational branches throughout India. In Q1FY20 the company’s net income was improved by 24.5% to Rs.2,045 crore and consolidated Net Profit increased by 12% YOY to Rs.315.17 crore.

Stock Data
Sectoral IndexFinancial Services
52W High1003
52W Low322.45
Face Value2
Relative Performance_Cholamandalam vs Nifty Financial Services


  • On a monthly chart, the stock has been moving with it’s upward rising trend line since last many years and it seems that it could continue with its ongoing move.
  • The current price just holds above the trend line which was tested several times during 2010-2019, thereby making it strong support.
Cholamandalam Invest Monthly Chart
Cholamandalam Invest Monthly Chart


  • Technical indicators are currently giving positive signals as the stock trades above the short term (20 days EMA) and medium term (50 days EMA) moving averages.
  • Overall a positive chart and momentum pattern indicating an opportunity for a BUY trade. Advice to Buy this stock as per the levels mentioned above.
Cholamandalam Invest Daily Chart
Cholamandalam Invest Daily Chart

CONCLUSION - Cholamandalam Invest and Finance SHARE PRICE FORECAST

Based on our positional share trading calls, Cholamandalam Invest and Finance share price target will be 312 – 315 in the next few days.


1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.


The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).


The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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