Axis Bank, Shriram Finance, Chola Finance Holdings: How to trade these 3 financial stocks

Indian benchmark indices settled on a mixed note on Tuesday ahead of Wednesday's mid-week holiday on the back of muted global cues and key economic data due later this week. Sentiments remained feeble amid valuations and tariff concerns. BSE Sensex gained 147.71 points, or 0.20 per cent, to end the session at 74,602.12. However, NSE's Nifty50 shed merely 5.80 points, or 0.03 per cent, to settle at 22,547.55 for the day.

Some buzzing financial stocks including Axis Bank Ltd, Shriram Finance Ltd and Cholamandalam Finance Holdings Ltd are likely to remain under the spotlight of traders for the session today. Here is what Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services has to say about these stocks ahead of Thursday's trading session:

Shriram Finance | Buy | Target Price: Rs 620 | Stop Loss: Rs 545

Shriram Finance has witnessed a strong bullish momentum, breaking above a key downward-sloping trendline resistance. This breakout, coupled with sustained price action above crucial moving averages, signals the potential for further upside. The stock is currently trading above the 55-day EMA and the 200-day EMA, reinforcing positive sentiment. The recent surge is supported by rising trading volumes, indicating strong institutional participation. The RSI stands at 58.09 and is trending higher, reflecting strengthening bullish momentum while still having room before reaching overbought levels. Additionally, the MACD has given a positive crossover, further validating the ongoing upward trajectory.

Axis Bank | Buy | Target Price: Rs 1,105-1,120 | Stop Loss: Rs 932

Axis Bank is showing signs of a potential reversal after taking strong support near the 200-week EMA Rs 948, which has historically acted as a key demand zone. The stock formed a bullish candle near this level, indicating buying interest. The RSI (38.54) is attempting to recover from oversold territory, suggesting a possible momentum shift. Additionally, the MACD histogram is showing early signs of convergence, hinting at a potential trend reversal. Price structure is now ‘buy on dip’ and we believe any fall close Rs 1,005-1,000 will attract fresh buying with potential upsurge towards Rs 1105, and then Rs 1120.

Cholamandalam Finance Holdings | Buy | Target Price: Rs 1,698-1,720 | Stop Loss: Rs 1,476

Share prices of Cholamandalam Finance Holdings have broken out of a downward-sloping consolidation pattern, indicating renewed bullish momentum. The stock is trading above the 21-day EMA and the 200-day EMA, reinforcing a positive bias. The RSI at 58.61 is trending higher, suggesting increasing strength in the uptrend. Furthermore, the MACD has given a bullish crossover, confirming upward momentum. With strong price action and rising volumes, the stock is well-positioned for further upside. It has the potential to move towards Rs 1,698 and then Rs 1,720 in the near term, while Rs 1,476 remains a key support level. We recommend a buy at current levels, with dips providing additional accumulation opportunities.