CDSL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.3

📊 Analysis Summary

CDSL is a fundamentally strong company but currently facing technical weakness and valuation pressure. It may offer a short-term swing opportunity if reversal signals emerge, but caution is warranted.

🔍 Technical Indicators

RSI (32.0): Deep in oversold territory — potential for a bounce.

MACD (-25.2): Strong bearish momentum, no signs of reversal yet.

Price vs DMA

Current Price (₹1,540) is below 50 DMA (₹1,636) but above 200 DMA (₹1,464) — mixed trend.

Volume: Slightly below average — weak momentum.

📈 Fundamental Snapshot

P/E (65.1) vs Industry PE (51.3): Overvalued.

PEG Ratio (3.39): High — growth not justifying valuation.

ROCE (42.0%) & ROE (32.7%): Excellent returns — strong business quality.

EPS (₹23.7) vs Price (₹1,540): Premium valuation.

Debt to Equity (0.00): Debt-free — very positive.

Qtr Profit Decline (-23.7%): A concern, but not alarming.

FII Holding ↑ (1.56%): Positive institutional sentiment.

DII Holding ↓ (-1.17%): Slight caution from domestic investors.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹1,500–₹1,520 range, near support and oversold RSI.

Wait for RSI to cross 40 and MACD to flatten or turn positive.

Look for volume spike or bullish reversal candle.

🚪 Exit Strategy (If Already Holding)

Exit near 50 DMA (₹1,636) or partial booking at ₹1,700.

If price breaks below ₹1,500, consider stop-loss at ₹1,470 (near 200 DMA).

⚖️ Final Verdict

CDSL is a technically weak but fundamentally strong stock. It’s not ideal for aggressive swing trading right now, but could offer a short-term bounce from oversold levels if technicals improve.

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