Cholamandalam Investment & Finance Company Ltd

NSE :CHOLAFIN   BSE :511243  Sector : Finance

About Company: Cholamandalam Investment & Finance Company is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and Loan against property

New in CHOLAFIN: Cholamandalam Investment and Finance Company on Monday said it plans to acquire 72.12 per cent stake in fintech payment solutions provider Payswiff Technologies Private Ltd for Rs 450 crore.

Daily Chart of CHOLAFIN:

Technical Outlook of Cholamandalam Investment & Finance Company Ltd:

Company today was in focus due to new of acquiring stake in payswiff. Stock gained 1.96% or 11.75 per share and closed at 612.45 on NSE. Volumes were higher the usual. As broader market has seen sell off Midcap100Free Index fall by -659 Points and closed at 31381 and NiftyNext50 Index fell by -755 points and closed at 42958.55. Nifty50Index closed at 5 Days low at 18113.05 forming Bearish Engulfing pattern. Further profit booking is expected in the market before JAN Series Expiry and Budget 2022 announcement.

On the Daily Chart of CHOLAFIN, when we plotted Fibonacci Retrenchment Series from Swing high of 667.40 on 12Nov2021 to swing low of 469.25 on 20Dec2021 we observed today stock touched 0.786% retrenchment level of 625. From here further up move will be seen in stock only once it sustains above resistance level of 625. On the lower side immediate support for the stock is seen at 0.618% Fibonacci retrenchment level around 591.70. Relative Strength Index is trading at 64.85 and approaching towards 70 which indicates upwards momentum in the stock.

As stock is trading above all major exponential moving averages (20,50,100,200) we have a positive outlook on the stock and recommend to buy stock on correction around 600. Targets expected are 667- 750. Stoploss should be placed around 200 EMA and 0.382% Fibonacci Retrenchment level at 544.

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