CDSL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | CDSL | Market Cap | 25,782 Cr. | Current Price | 1,234 ₹ | High / Low | 1,829 ₹ |
| Stock P/E | 53.7 | Book Value | 67.4 ₹ | Dividend Yield | 1.01 % | ROCE | 46.5 % |
| ROE | 36.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,320 ₹ | DMA 200 | 1,438 ₹ |
| Chg in FII Hold | 0.86 % | Chg in DII Hold | 0.94 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 44.2 | MACD | -39.1 | Volume | 20,27,771 | Avg Vol 1Wk | 19,64,487 |
| Low price | 1,080 ₹ | High price | 1,829 ₹ | PEG Ratio | 2.61 | Debt to equity | 0.00 |
| 52w Index | 20.5 % | Qtr Profit Var | 14.3 % | EPS | 23.0 ₹ | Industry PE | 46.1 |
📈 Chart & Trend: CDSL is trading at ₹1,234, below both its 50 DMA (₹1,320) and 200 DMA (₹1,438). This indicates short-term and medium-term weakness, with the stock consolidating near support levels.
📊 Momentum Indicators:
- RSI at 44.2 suggests neutral to mildly oversold conditions.
- MACD at -39.1 shows bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (20.3 lakh) is slightly above 1-week average (19.6 lakh), showing healthy participation.
🔑 Support & Resistance:
- Support zone: ₹1,200–₹1,220
- Resistance zone: ₹1,320–₹1,340 (near 50 DMA)
- Breakout resistance: ₹1,400–₹1,450 (near 200 DMA)
- Long-term support: ₹1,080
📌 Entry & Exit Zones:
- Entry: ₹1,200–₹1,230 (near support)
- Exit: ₹1,320–₹1,400 (resistance zone)
- Stop-loss: ₹1,180
📉 Trend Status: Consolidating with bearish bias. Needs a breakout above ₹1,320–₹1,340 to confirm reversal and trend continuation.
Positive
- ROCE at 46.5% and ROE at 36.3% reflect strong operational and shareholder returns.
- Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet.
- EPS of ₹23 with consistent profitability.
- FII (+0.86%) and DII (+0.94%) holdings increased, signaling institutional confidence.
Limitation
- Stock P/E of 53.7 is higher than industry PE of 46.1, indicating premium valuation.
- PEG ratio of 2.61 suggests limited growth relative to valuation.
- Quarterly PAT declined (₹120 Cr vs ₹128 Cr), showing earnings pressure.
Company Negative News
- No major recent negative news reported, but earnings decline in the latest quarter is a concern.
Company Positive News
- Debt-free status strengthens financial stability.
- Strong ROCE and ROE highlight efficient capital use.
- Institutional investors increasing stake.
Industry
- Industry PE at 46.1 vs stock PE at 53.7 shows CDSL trades at a premium.
- Financial services sector supported by rising retail participation in capital markets.
Conclusion
⚡ CDSL is consolidating with bearish bias, trading below key moving averages. Entry near ₹1,200–₹1,230 offers margin of safety, with exit targets around ₹1,320–₹1,400. Strong fundamentals, debt-free status, and institutional inflows support long-term prospects, but premium valuation and recent earnings decline pose short-term risks.
Would you like me to extend this into a peer benchmarking overlay comparing CDSL with NSDL and other capital market infrastructure players to highlight relative strength, valuation gaps, and sector rotation opportunities?