Sundaram Finance can top ₹ 6,200, gain another 24% by year-end; chart hints

Sundaram Finance stock has rallied nearly 23 per cent thus far in 2025, and is seen trading with a favourable bias across time-frames on the technical charts. Here are the key levels to track.

Sundaram Finance stock has been buzzing in trades and has rallied over 13 per cent, from levels of ₹ 4,482 to a high of ₹ 5,073, in the last six trading sessions on the back of positive news flow.  That stock has moved higher in line with gains seen in shares of other non-banking companies such as Bajaj Finance, Shriram Finance, Mahindra & Mahindra Financial Services and Manappuram Finance. The gains in these stocks was attributed to Reserve Bank of India's (RBI) recent measures aimed at injecting nearly ₹ 1.9 trillion in liquidity into the banking system.  The RBI has rolled back some of the stricter rules on bank loans to NBFCs, reducing the risk weight on consumer microfinance loans by 25 percentage points to 100 per cent. This move may encourage banks to increase their funding to NBFCs, news agency Reuters reported. READ MORE  That apart, the company's home loan finance unit - Sundaram Home Finance has expanded its presence under the Emerging Business segment in Chennai, and aims to disburse up to ₹ 50 crore over the next 12 months. The company inaugurated four new home loan branches so far this March.    Against this background, here's a technical outlook Sundaram Finance stock.  Sundaram Finance  Current Price: ₹ 5,037  Upside Potential:  Support: ₹ 4,937; ₹ 4,640; ₹ 4,550  Resistance: ₹ 5,185; ₹ 5,430; ₹ 5,773  Sundaram Finance share has been an outperformer so far in March; the stock has rallied 15.3 per cent as against a 5.5 per cent up move in the NSE benchmark - Nifty 50 index. So far in the year 2025, the stock has surged 22.7 per cent. Technically, the stock is seen trading above its key moving averages across time-frames; which is a bullish sign.    Today, the stock has seen formation of the 'Golden Cross' pattern on the daily chart; meaning the 50-DMA (Daily Moving Average) of the stock crossed over the 200-DMA. In general, a 'Golden Cross' is considered as a positive indicator for the stock.  Further, the long-term chart shows that the stock has been in a secular bull run since the breakout above the 20-MMA (Monthly Moving Average) in September 2022. The stock has since rallied by nearly 126 per cent at the day's high today. Amid the recent downturn in equities, the stock consistently found support around the 20-MMA; thus validating its significance.  The 20-MMA for the stock stands at ₹ 4,140; and shall be treated as the key long-term pivot. For now, the near-term bias for the stock is seen at ₹ 4,937, and the trend is expected to remain favourable as long as the stock holds above ₹ 4,640 levels; below which another key support for the stock exists at ₹ 4,550 levels. CLICK HERE FOR THE CHART  On the upside, the stock can potentially zoom to ₹ 6,235 levels in the next 9 months - suggests the Fibonacci charts. Interim resistance for the stock can be expected around ₹ 5,185, ₹ 5,430 and ₹ 5,773 levels.