CHOLAFIN Technical & Trade AnalysisCHOLAFIN Technical & Trade Analysis
1️⃣ Price Action
CHOLAFIN surged +4.31% to close at ₹1,583.10, marking a strong bullish candle on the daily chart. Price action shows a clean breakout attempt, with momentum reclaiming higher zones. The stock is now eyeing ₹1,662 → ₹1,737 → ₹1,845 as upside targets, while support holds near ₹1,536 – ₹1,490 – ₹1,463.
Key Levels:
🔴 Resistance: 1,609 | 1,635 | 1,681
🟢 Support: 1,536 | 1,490 | 1,463
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2️⃣ Volume Analysis
Breakout is strongly backed by heavy volume. On breakout day, traded volume stood at 3.34M shares, almost 3.89× its 20-day average (1.15M shares). Such abnormal activity indicates institutional participation, confirming this is not a random spike but a move with strong backing.
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3️⃣ Technical Indicators
✅ RSI: 65 → Bullish but not overbought yet
✅ MACD: Daily & Weekly bullish crossover confirmed
✅ CCI: 152 → Shows overbought momentum, supports trend
✅ Stochastic: 97 (Daily) → High momentum zone, short-term overheated
⚡ Multi-timeframe View: Daily & Weekly bullish, Monthly still sideways → Good for swing traders, long-term investors should stagger entries
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4️⃣ Trade Setup
📈 Daily Closing Basis Trade
Entry: ₹1,588.20
SL: ₹1,513.77
Target 1: ₹1,662.63
Target 2: ₹1,737.06
⚖️ Risk–Reward: ~1:2 | Momentum strongly in favor
📊 Swing Trade Setup
Entry: ₹1,588.20
SL: ₹1,489.40
Target 1: ₹1,687
Target 2: ₹1,785
🚀 Higher potential: ₹1,845 (Fib extension)
Intraday Pullback level: 1560
Swing Pullback level: 1577
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5️⃣ Investment Outlook
📈 Bullish Case – Why CHOLAFIN may go up
Strong bullish candle with massive volume (3.89× avg.)
RSI breakout with MACD crossover
Sectoral momentum in NBFC/finance space
Strong support zone near 1,490–1,460 ensures limited downside
📉 Bearish Case – Watch out for
Overheated stochastic (near 97) may cause short-term pullback
Resistance around ₹1,681–1,735 is critical supply zone
Broader market weakness could stall momentum
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⚡ Final Outlook
Momentum: Strong | Trend: Bullish | Risk: Low | Volume: High
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💡 Learning Note
This setup is a classic high-volume breakout trade → when price action, RSI, MACD, and volume align, probability of success is high. NBFC sector plays like CHOLAFIN can deliver strong short-term swing moves when backed by 3–4× volume spikes.
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📈 Chart Pattern Analysis
CHOLAFIN on the daily timeframe has given a Double Bottom / Inverse Head & Shoulders–type breakout, a classic bullish reversal setup. The two key lows were formed near the ₹1,470–1,490 zone, showing strong demand absorption at that level. The neckline breakout came around ₹1,544–1,550, confirmed with a big green candle and 3.89× average volume, which validates institutional participation. This breakout indicates that sellers failed to push the stock lower twice, and buyers have now taken control, shifting momentum firmly to the upside. Based on the pattern projection and Fibonacci extensions, the upside potential extends towards ₹1,684 → ₹1,760 → ₹1,800, aligning with the 1.0 and 1.272 Fib levels.
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⚠️ Disclaimer – Please Read Carefully
The information shared here is meant purely for learning and awareness. It is not a buy or sell recommendation and should not be taken as investment advice. I am not a SEBI-registered investment advisor, and all views expressed are based on personal study, chart patterns, and publicly available market data.
Trading — whether in stocks or options — carries risk. Markets can move unexpectedly, and losses can sometimes exceed the money you have invested. Past performance or past setups do not guarantee future results.
If you are a beginner, treat this as a guide to understand how the market works — practice on paper trades before risking real money. If you are experienced, always assess your own risk, position sizing, and strategy suitability before entering trades.
Consult a SEBI-registered financial advisor before making any real trading decision. By engaging with this content, you acknowledge full responsibility for your trades and investments.
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