The short-term outlook is bullish for Cholamandalam Investment and Finance Company. An inverted head and shoulder pattern on the daily chart indicates a trend reversal. The strong rise and close above ₹1,300 on Tuesday confirm this pattern. It also marks the end of the strong downtrend that was in place since the last week of September. Supports are at ₹1,300 and ₹1,270 which can limit the downside. Cholamandalam Investment and Finance Company share price can rise to ₹1,400 in the next two-three weeks. Traders can go long now at ₹1,337. Accumulate on dips at ₹1,310. Keep the stop-loss at ₹1,285. Trail the stop-loss up to ₹1,350 as soon as the stock goes up to ₹1,365. Revise the stop-loss further up to ₹1,370 when the price touches ₹1,385. Exit the long positions at ₹1,400.

Video Credit: Businessline

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)