Sundaram Finance Poised to Reach ₹6,200, Gaining 24% by Year-End: Technical Charts Indicate Strong Upside
By Rex Cano, Mumbai | March 21, 2025
Sundaram Finance has been a strong performer in the stock market this year, with its shares rallying nearly 23% in 2025. Recent technical analyses suggest the stock could climb further, potentially crossing the ₹6,200 mark — representing an additional 24% upside by the end of the year.
Recent Rally and Positive Market Sentiment
The stock has surged more than 13% over the past six trading sessions alone, moving from ₹4,482 to a recent high of ₹5,073. This rally is supported by buoyant market sentiment following favorable policy developments and company-specific growth.
Sundaram Finance’s upward momentum aligns with gains in other notable non-banking financial companies such as Bajaj Finance, Shriram Finance, Mahindra & Mahindra Financial Services, and Manappuram Finance. The Reserve Bank of India’s (RBI) recent liquidity injection, amounting to nearly ₹1.9 trillion, and easing of certain regulatory norms for NBFCs have contributed to this positive trend.
Specifically, the RBI reduced the risk weight on consumer microfinance loans issued to NBFCs by 25 percentage points to 100%, a move expected to boost bank funding to non-banking financial companies, thereby fuelling their growth potential.
Growth Initiatives Bolster Confidence
On the business front, Sundaram Finance’s home loan arm, Sundaram Home Finance, has expanded its footprint under the Emerging Business segment, particularly in Chennai. The company has opened four new branches in March alone and aims to disburse up to ₹50 crore in home loans over the next 12 months, reflecting a strategic push to deepen its presence in the housing finance sector.
Technical Outlook: Bullish Signals Prevail
From a technical perspective, Sundaram Finance shares are demonstrating strong bullish indicators across various time frames. Currently trading at ₹5,037, the stock has comfortably outperformed the NSE benchmark Nifty 50 index, which rose 5.5% during the same period in March 2025, while Sundaram Finance soared 15.3%.
A key bullish signal is the formation of the “Golden Cross” on the daily chart, wherein the 50-day moving average (DMA) has crossed above the 200-DMA. This pattern typically signals sustained upward momentum and is often interpreted by traders as a buy signal.
The stock’s long-term chart also indicates a solid uptrend since it breached its 20-month moving average (MMA) in September 2022. Since that breakout, the stock has surged approximately 126% from that pivot point, showcasing its sustained strength despite broader market fluctuations.
Support and Resistance Levels to Watch
Technical analysts highlight crucial price levels:
- Support: ₹4,937, ₹4,640, and ₹4,550
- Resistance: ₹5,185, ₹5,430, and ₹5,773
As long as the stock sustains levels above ₹4,640, the near-term trend remains favorable. The 20-MMA at ₹4,140 continues to act as a vital long-term support zone.
Using Fibonacci retracement and extension tools, experts identify the potential for Sundaram Finance shares to reach around ₹6,235 within the next nine months, reinforcing the optimistic price target for investors.
Conclusion
With strong fundamental growth drivers, supportive RBI policies, and robust technical charts, Sundaram Finance is poised for continued growth through 2025. Investors monitoring the stock can watch key support and resistance levels while considering the stock’s clear upward trajectory in the months ahead.
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