Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS) shares are showing positive signals short-term as the stock has finished higher by 32.88% over the past three months. In taking a look at recent performance, we can see that shares have moved 14.49% over the past 4-weeks, 17.02% over the past half year and 2.82% over the past full year. Shares ticked 3.23 over the past week.

Investing in the stock market may include having to keep emotions in check. When things get crazy, investors may be forced with tough decisions. Being able to stay away from impulsive decisions may help when the time comes to tweak the portfolio. Having the proper discipline and market perspective may also be a highly desirable trait for a successful trader. Investors who are able to practice discipline may be able to avoid emotional trading pitfalls in the future. Even highly experienced investors may have to someday make the difficult decisions in order to keep the portfolio strong. Figuring out what works and what doesn’t may take many years of trial and error. Learning to filter through the daily noise can be a big asset when trying to focus on the particularly important information.

Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS) currently has a 14-day Commodity Channel Index (CCI) of 102.82. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought, and a reading of -100 would imply that the stock is oversold.

A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS) has a 200-day MA of 1302.63, and a 50-day of 1411.34. Presently, the stock has a 14-day RSI of 67.07, the 7-day is sitting at 74.69, and the 3-day is resting at 79.51. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.

Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS)’s Williams Percent Range or 14 day Williams %R presently is at -7.20. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX presently sits at 32.32. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.

At the time of writing, the 14-day ADX for Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS) is 32.32. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 67.07, the 7-day is at 74.69, and the 3-day is spotted at 79.51 for Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS).

Individuals invest in order to get a return on the investment. Nobody enters the equity markets with the hope of losing money. Returns on investments may come in different forms. With any stock investment, there may be some level of risk involved. Understanding the risk is important and should be considered very carefully. Of course, the stock may go up and become a winner, or shares could sour and turn into losers. Returns in the stock market may often mimic the amount of risk. Generally speaking, the greater the risk, the greater the reward. With the greater chance of reward comes the greater chance of losses. Keeping a balanced and diversified portfolio can help manage the risk associated with investing in the stock market.