CGCL — A Breakout Worth Watching

CGCL is showing a good breakout setup, but before looking at the current move, the price action history is worth understanding. Back in March 2024, the stock faced a strong rejection near its all-time-high zone. After that, price formed a double-bottom structure around June 2025 and again in March 2026. In mid-June, the neckline was broken, followed by a retest of the breakout level. That retest held, and the stock delivered a strong momentum move. Now the interesting part: In the first half of August, price came back to retest the same neckline, which had now turned into support around the ₹214–₹220 zone. The retest held again, and the stock has since delivered another strong move. This is the kind of price action I like to watch — base formation, breakout, successful retest, and then continuation. The next major hurdle is around ₹289, which is close to an important previous resistance/ATH zone where strong selling was seen in the past. However, considering the way price has built a base, broken out, retested support and continued higher, a decisive move through that resistance could open the door for further upside. Fundamental backdrop The latest Q1 FY27 numbers also provide a supportive backdrop. • Consolidated AUM: ₹40,112 Cr, up 62% YoY • PAT: ₹353 Cr, up 102% YoY • NII: ₹736 Cr, up 79% YoY • RoAE: 19.1% • RoAA: 4.1% • Gross Stage 3: 1.1% • Net Stage 3: 0.6% Management has also raised its FY28 AUM target to ₹65,000 Cr, while continuing to focus on growth across gold loans, MSME, affordable housing and construction finance. So from both the price-action and business-growth perspective, CGCL is definitely on my radar. For me, the key thing now is whether this momentum sustains and how price behaves as it approaches the ₹289 resistance zone. Calculated risk makes sense, but I would still prefer confirmation rather than chasing the move. Keeping it on the radar.