Shriram Finance has been highlighted as a prominent Republic Day stock pick for 2026 by Sumeet Bagadia of Choice Broking, with the NBFC stock backed by a robust technical structure and consistent buying interest across various timeframes. The brokerage firm emphasized that the stock is displaying a clear higher high–higher low formation on the daily chart, which is a classic indicator of trend continuation and bullish sentiment in the market.
Recent Performance and Price Action
On Friday, January 23, Shriram Finance share price closed marginally lower by 0.29% at ₹1,003.45 on the BSE. Despite this minor dip, the stock has demonstrated impressive gains in recent periods. It has rallied by 89% over the last one year, showcasing strong upward momentum. Additionally, the stock has risen by 53% in the past six months, 41% in three months, and 5% in the last month, indicating sustained growth across short to medium terms.
Proximity to Peak and Historical Returns
Currently, Shriram Finance is just 2% away from its all-time peak of ₹1,025.00, which was achieved in January 2026. This nearness to its high point underscores the stock's resilience and potential for further appreciation. Moreover, the stock has surged over 97% from its 52-week low of ₹508.95, hit in January 2025, highlighting a significant recovery and bullish phase. Over the last five years, it has delivered multibagger returns, soaring by an impressive 336%, making it an attractive option for long-term investors.
Technical Analysis and Support Levels
According to Choice Broking, Shriram Finance was trading around ₹1,007, supported by steady volumes that suggest ongoing accumulation and strong market participation. The stock recently found support near its 20-day exponential moving average (EMA) around ₹980 and has resumed its upward trajectory, reinforcing the short-term bullish bias. This technical setup indicates that the stock is well-positioned for continued growth, with key support levels acting as buffers against downside risks.
Broader Technical Perspective and Momentum Indicators
From a broader technical perspective, Bagadia noted that Shriram Finance remains firmly bullish as it continues to trade well above its 20-day, 50-day, 100-day, and 200-day EMAs, all of which are sloping upward. He added, "The stock remains firmly bullish as it continues to trade well above its key moving averages, underscoring the strength of the prevailing trend." This alignment of moving averages is a positive signal for trend followers and technical analysts.
The expert further stated that after a healthy accumulation phase, the resumption of upward momentum could open the door for medium- to long-term targets of ₹1,110 and ₹1,165. Momentum indicators also support the positive outlook, with the relative strength index (RSI) at 66.89, indicating strong momentum while still staying below overbought levels, which suggests room for further upside without immediate reversal risks.
Investment Strategy and Recommendations
Bagadia advised investors to consider long positions near current levels, with dips offering accumulation opportunities up to ₹980, while maintaining positional support near ₹945 to manage downside risk. He noted, "With momentum indicators trending higher, the stock is well-placed to continue its upward move." This strategy provides a balanced approach, allowing investors to capitalize on potential gains while safeguarding against market volatility.
It is important to note that the views and recommendations mentioned above are those of individual analysts or broking companies and not of Mint. Investors are advised to consult with certified experts before making any investment decisions to ensure alignment with their financial goals and risk tolerance.
