On Wednesday, shares of Central Depository Services (India) Ltd (CDSL) stopped an 11-day losing skid amid strong market volatility. The stock, which finished at Rs 1,538.65 on September 20, 2024, ended the previous session at Rs 1362, down 11.5% on the NSE. The stock is not listed on the BSE.
However, the CDSL stock has recaptured the Rs 1,400 level in the current session. It increased 8.5% to Rs 1477.80 in the afternoon session today. The market capitalization of CDSL increased to Rs 30,541 crore.
In six months, the stock has grown 56.35% this year and 123% in a year. A total of 84.10 lakh CDSL shares changed hands, generating a transaction of Rs 1213.23 crore. The stock has a beta of one, which indicates typical annual volatility.
In terms of technicals, CDSL's relative strength index (RSI) is 38.7, indicating that it is neither overbought nor oversold. CDSL shares are trading above the five-day, ten-day, twenty-day, fifty-day, hundred-day, and 200-day moving averages.
The stock is currently up 131% from its 52-week low of Rs 631 on October 26, 2023. In July of this year, the CDSL board announced the first-ever bonus share offering.
On August 23, the CDSL stock price became ex-bonus at a ratio of 1:1. The CDSL shares reached a record high of Rs 1664.40 after being ex-bonus.
Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox, stated, "CDSL (Central Depository Services Ltd.) is now trading at Rs 1,466, demonstrating resilience during a sideways consolidation period between Rs 1,585 and Rs 1,430. The stock recently endured 11 straight down days following a robust surge, but has subsequently entered a good period of stabilization. On the technical front, CDSL is well above its major moving averages, indicating continuing gains. The Average Directional Index (ADX) is at 23, confirming a stable trend, while the Relative Strength Index (RSI) has eased to 58, indicating that the stock is not overbought and may have opportunity for additional upward growth. If CDSL can hold its present support levels and break over Rs 1,585, immediate objectives of Rs 1,650 and Rs 1,800 may be attainable. However, traders should exercise caution because a dip below Rs 1,330 would undermine the optimistic picture, perhaps leading to more downward pressure."
According to Osho Krishan, Senior Analyst - Technical & Derivatives at Angel One, "CDSL is in a larger time-wise corrective phase following the tremendous rise we observed this year. The technical indicators have softened from overbought levels, and price activity is primarily sideways with a bullish undertone. The counter has significant support between Rs 1350–Rs 1300, which coincides with the bottom range of the larger consolidation period. On the higher end, Rs 1540–1570 remains the intermediate barrier, and a decisive breach is expected to spark the next leg of the rally in the counter."
Jigar S Patel, Manager at Anand Rathi, stated, "Support would be Rs 1420, resistance Rs 1478. A decisive closing over Rs 1478 may spark a fresh rally to Rs 1525. For the immediate term, the projected trading range is Rs 1400 to Rs 1525.
"CDSL provides a nice purchasing opportunity. The near-term support level would be Rs 1,348. Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher, told Business Today TV that once the stock moves over Rs 1,430, it will become a trend.
AR Ramachandran, a Sebi-registered research analyst, stated CDSL's stock price is negative on daily charts. "Strong resistance will be at Rs 1,428. "A daily close below Rs 1,348 could lead to a downward target of Rs 1,254 in the near term," he said.
CDSL reported an 82% increase in net profit for the quarter ending June 2024. Profit increased to Rs 134.20 crore in the June 2024 quarter, compared to Rs 73.57 crore in the same quarter the previous year. Revenue increased 72% in the first quarter to Rs 257.38 crore, up from Rs 149.68 crore in the same quarter last year.
Central Depository Services (India) is SEBI-registered. The goal of CDSL was to provide all market participants with a simple, trustworthy, and secure repository at a reasonable rate.
