CDSL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.9

📈 CDSL is currently in a trending phase with bullish momentum indicators and price action above key moving averages.

📊 Technical Overview

• Trend Status: Trending upward — price has risen significantly from its 52-week low of ₹1,047 and is holding above key averages.
• Moving Averages: Price is above both 50 DMA (₹1,574) and 200 DMA (₹1,507), confirming bullish sentiment.
• RSI (50.7): Neutral zone, indicating balanced momentum with room for upside.
• MACD (18.1): Positive crossover supports ongoing bullish momentum.
• Bollinger Bands: Price near mid-band, suggesting consolidation within an uptrend.
• Volume: Above average (21.01L vs 16.62L), indicating strong buying interest.

📌 Entry & Exit Zones

• Support Zone: ₹1,500–₹1,550 — ideal for accumulation or fresh entry.
• Resistance Zone: ₹1,650–₹1,700 — potential exit or partial profit booking zone.
• Breakout Level: ₹1,990 — crossing this could lead to new highs.

✅ Positive

• Strong ROCE (46.5%) and ROE (36.3%) reflect efficient capital use.
• Zero debt and high EPS (₹22.3) support long-term stability.
• Price action above key moving averages with bullish volume trends.

⚠️ Limitation

• High P/E (71.6) and PEG ratio (3.47) suggest overvaluation.
• Quarterly profit dropped by 25.5%, indicating short-term pressure.
• Neutral RSI may limit immediate upside.

📰 Company Negative News

• Decline in FII holdings (-1.36%) and DII holdings (-0.06%) may reflect cautious institutional sentiment.
• Quarterly PAT fell from ₹152 Cr to ₹128 Cr.

🌟 Company Positive News

• Strong long-term fundamentals with zero debt and high return ratios.
• Consistent volume strength and technical resilience above moving averages.

🏭 Industry

• Operates in financial infrastructure services, benefiting from rising retail participation in markets.
• Industry P/E (54.7) is lower than the stock’s, indicating premium valuation.

🧾 Conclusion

• CDSL is technically strong with bullish indicators and solid fundamentals.
• Entry near ₹1,500–₹1,550 is favorable; watch for breakout above ₹1,990.
• Long-term investors may benefit from growth and stability; short-term traders should monitor RSI and resistance levels.