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CDSL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.6

Stock Code CDSL Market Cap 25,857 Cr. Current Price 1,237 ₹ High / Low 1,829 ₹
Stock P/E 53.9 Book Value 67.4 ₹ Dividend Yield 1.02 % ROCE 46.5 %
ROE 36.3 % Face Value 10.0 ₹ DMA 50 1,446 ₹ DMA 200 1,495 ₹
Chg in FII Hold 0.86 % Chg in DII Hold 0.94 % PAT Qtr 120 Cr. PAT Prev Qtr 128 Cr.
RSI 24.4 MACD -52.3 Volume 57,85,378 Avg Vol 1Wk 27,63,731
Low price 1,047 ₹ High price 1,829 ₹ PEG Ratio 2.61 Debt to equity 0.00
52w Index 24.3 % Qtr Profit Var 14.3 % EPS 23.0 ₹ Industry PE 49.1

📊 Technical Analysis

  • Chart Patterns: CDSL has been in a corrective downtrend from its 52-week high of 1,829 ₹, currently consolidating near 1,237 ₹.
  • Moving Averages: Price (1,237 ₹) is below both 50 DMA (1,446 ₹) and 200 DMA (1,495 ₹), confirming bearish momentum.
  • RSI: At 24.4, oversold zone — potential rebound possible.
  • MACD: Negative (-52.3), reinforcing bearish sentiment.
  • Bollinger Bands: Price near lower band, signaling possible support zone.
  • Volume Trends: Current volume (57.8 lakh) above 1-week average (27.6 lakh), showing strong selling pressure.

📈 Momentum & Signals

  • Short-term Momentum: Weak due to negative MACD and oversold RSI.
  • Support Levels: 1,200 ₹ (near-term), 1,047 ₹ (major support).
  • Resistance Levels: 1,300 ₹ (short-term), 1,446 ₹ (50 DMA).
  • Optimal Entry Zone: 1,180–1,220 ₹ (close to support).
  • Optimal Exit Zone: 1,300–1,400 ₹ (near resistance).
  • Trend Status: Reversing into bearish territory with oversold signals.

✅ Positive

  • Strong ROCE (46.5%) and ROE (36.3%) highlight excellent capital efficiency.
  • Debt-free balance sheet (Debt-to-equity 0.00) reduces financial risk.
  • FII (+0.86%) and DII (+0.94%) holdings increased, showing institutional confidence.

⚠️ Limitation

  • High P/E (53.9) compared to industry PE (49.1), suggesting premium valuation.
  • PEG ratio of 2.61 indicates limited growth relative to valuation.
  • Quarterly PAT declined (120 Cr vs 128 Cr), showing earnings pressure.

📉 Company Negative News

  • Stock trading below both 50 DMA and 200 DMA, signaling weakness.
  • Recent decline in quarterly profit raises concerns about near-term growth.

📈 Company Positive News

  • Quarterly profit variation of 14.3% highlights resilience despite decline.
  • EPS of 23 ₹ supports long-term earnings visibility.

🏭 Industry

  • Financial services sector supported by rising retail participation in capital markets.
  • Industry PE at 49.1 vs stock PE at 53.9 — stock trades at premium valuation.

🔎 Conclusion

  • CDSL is reversing into bearish territory with oversold technical signals.
  • Best entry near 1,180–1,220 ₹, exit near 1,300–1,400 ₹ unless breakout above 1,446 ₹ occurs.
  • Medium-term outlook cautious due to valuation premium and weak momentum, though strong fundamentals and debt-free status provide stability.

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