CDSL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | CDSL | Market Cap | 25,995 Cr. | Current Price | 1,244 ₹ | High / Low | 1,829 ₹ |
| Stock P/E | 55.5 | Book Value | 76.5 ₹ | Dividend Yield | 1.00 % | ROCE | 40.3 % |
| ROE | 31.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,257 ₹ | DMA 200 | 1,369 ₹ |
| Chg in FII Hold | -1.04 % | Chg in DII Hold | -0.70 % | PAT Qtr | 68.8 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 51.3 | MACD | -14.3 | Volume | 19,97,940 | Avg Vol 1Wk | 16,91,364 |
| Low price | 1,116 ₹ | High price | 1,829 ₹ | PEG Ratio | 2.80 | Debt to equity | 0.00 |
| 52w Index | 17.9 % | Qtr Profit Var | -14.9 % | EPS | 22.4 ₹ | Industry PE | 41.4 |
📊 Chart Patterns & Trend: CDSL is consolidating after a decline from its 1,829 ₹ high. Current price (1,244 ₹) is below both 50 DMA (1,257 ₹) and 200 DMA (1,369 ₹), reflecting weakness. Support lies near 1,200–1,220 ₹, with resistance at 1,280–1,300 ₹. Trendlines suggest sideways consolidation with bearish undertone.
📈 Moving Averages: Price is trading below both 50 DMA and 200 DMA, confirming short-term weakness and long-term caution.
📉 RSI: At 51.3, RSI is neutral, showing balanced momentum without strong buying signals.
📉 MACD: Negative (-14.3), confirming bearish momentum.
📊 Bollinger Bands: Price is near the mid-band, suggesting consolidation with limited volatility.
📊 Volume Trends: Current volume (19,97,940) is above the 1-week average (16,91,364), showing strong participation despite weak price action.
💡 Momentum Signals: Neutral to bearish bias. A breakout above 1,280–1,300 ₹ could trigger upside toward 1,350 ₹, while breakdown below 1,200 ₹ risks further decline.
🎯 Entry Zone: 1,200–1,220 ₹ (support region).
🎯 Exit Zone: 1,280–1,300 ₹ (resistance region; extended target 1,350 ₹).
📌 Status: Consolidating with bearish bias.
Positive
✔ Debt-free balance sheet (Debt-to-equity: 0.00).
✔ Strong ROCE (40.3%) and ROE (31.3%).
✔ EPS of 22.4 ₹ supports valuation strength.
✔ Industry PE (41.4) lower than CDSL’s PE (55.5), showing premium valuation but sector strength.
Limitation
⚠ Price trading below both 50 DMA and 200 DMA.
⚠ Negative MACD (-14.3) confirms bearish momentum.
⚠ Quarterly PAT declined (68.8 Cr. vs 120 Cr.).
⚠ Institutional holdings decreased (FII -1.04%, DII -0.70%).
⚠ PEG ratio of 2.80 indicates expensive growth.
Company Negative News
⚠ Quarterly profit variation (-14.9%) highlights earnings weakness.
⚠ Decline in institutional holdings shows reduced investor confidence.
Company Positive News
✔ Strong efficiency metrics (ROCE, ROE) continue to support valuation premium.
✔ Dividend yield of 1.00% adds investor appeal.
Industry
🏦 Financial services sector remains robust with increasing demand for digital depository services.
📈 Industry PE (41.4) lower than CDSL’s PE (55.5), suggesting premium valuation relative to peers.
Conclusion
📌 CDSL is consolidating below key moving averages with weak short-term momentum. Entry near 1,200–1,220 ₹ offers favorable risk-reward, while exits near 1,280–1,300 ₹ are prudent unless momentum strengthens for a breakout toward 1,350 ₹. Long-term investors should monitor valuation premium and earnings growth sustainability.
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