Cholamandalam Holdings: Technical Breakout Signals Fresh Bull Run, Says SEBI RA Aditya Thukral

Cholamandalam Financial’s robust technical indicators are supported by solid Q4 results and long-term prospects, the analyst said.

SEBI-registered analyst Aditya Thukral suggests buying Cholamandalam Financial Holdings at its current market price, projecting a potential 17% upside with a target of ₹2,400 over the next month.

Cholamandalam Financial shares have gained 11% in the last one month. 

The analyst said his recommendation is supported by strong technical signals of a fresh uptrend, backed by strong price action and volume confirmation. The stock has been forming consistent higher highs and higher lows on both short-term and long-term charts, indicating a steady bullish structure.

Thukral said the stock has consistently traded above key exponential moving averages, including the 50-day and 100-day EMAs.

After a period of consolidation, the stock has now broken out above the resistance line, coinciding with a breakout from a cup pattern, and accompanied by a noticeable increase in market participation, he added.

The relative strength indicator (RSI) has signaled the stock’s outperformance compared to the broader market, the analyst said. The 14-day RSI has broken out and currently sits near 60, giving enough headway for upside without being overbought.

All technical indicators suggest that this may be the beginning of a new bullish phase for the stock, according to Thukral.

The company had also posted strong Q4 results, with an 18% increase in net profit to ₹1,259 crore, while its net interest income surged 30% on-year to ₹3,056 crore. 

Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day earlier.

Year-to-date (YTD), the stock has gained over 45%.

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