CHOLAFIN- Cup & Handle Breakout with Strong Fundamentals

17 apr

CHOLAFIN – Cup & Handle Breakout with Strong Fundamentals ☕📈
📅 Published on: April 17, 2025

📊 Technical Analysis:
CHOLAFIN has formed a classic Cup & Handle pattern on the daily chart, indicating a potential bullish continuation. The breakout above the neckline is accompanied by increased volume, suggesting strong buying interest.​

Pattern: Cup & Handle
Neckline Breakout Level: ₹1,570
Current Price: ₹1,611.90 (+3.31%)
Volume: 2.05M—significant increase confirming breakout​

Support & Resistance Levels:
Immediate Support: ₹1,570
Next Support: ₹1,500
Resistance Levels:

• ₹1,635
  
• ₹1,680
  
• ₹1,750​
  

Indicators:
RSI: 66.11—approaching overbought territory, indicating strong momentum
MACD: Bullish crossover observed, supporting upward movement​

🏢 Fundamental Analysis:
Cholamandalam Investment and Finance Company Ltd. is a leading NBFC in India, operating in vehicle finance, home loans, and corporate finance sectors.​

Key Financial Metrics:

• Market Cap: ₹1,20,302 Cr
  
• PE Ratio: 29.60
  
• PB Ratio: 5.62
  
• ROE: 17.41%
  
• ROCE: 11.23%
  
• Dividend Yield: 0.14%
  

Recent Performance:
Net Profit Margin: 18.16%
Return on Assets: 2.18%
Asset Turnover Ratio: 0.14​

The company has demonstrated consistent profit growth over the past five years, with a CAGR of 23.4%. ​

📌 Trade Strategy (For Educational Purposes):
Entry Point: ₹1,570–₹1,600 (on retest)
Stop Loss: ₹1,500
Target Levels:

• ₹1,635
  
• ₹1,680
  
• ₹1,750​
  

📍 Visual Elements:

• Cup & Handle pattern highlighted
  
• Breakout point marked
  
• Support and resistance levels indicated
  
• Volume bars showing increased activity
  
• RSI and MACD indicators displayed​
  

🔔 Disclaimer: This analysis is for educational purposes only. Please conduct your own research or consult a financial advisor before making investment decisions.

21 apr

Trade chiuso: obiettivo raggiunto

The first resistance level has been touched. If the trend is to continue, it's important to follow a trailing stop-loss strategy and patiently wait for the price to approach the second resistance level.