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CDSL shares surge, setting sights on higher price targets

Stocks
2 min Read Oct 11, 2024
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Shares of Central Depository Services (India) Ltd (CDSL) are projected to surpass the ₹1,500 mark soon, as analysts suggest that it remains a favourable opportunity for investors looking to invest in stocks. The stock ended Thursday’s session on a positive note, rising for the second consecutive day, following an earlier 11-day decline.

Analysts remain optimistic about CDSL’s short-term growth

On Wednesday, Jigar S Patel, Senior Manager of Equity Research at Anand Rathi, commented that CDSL's stock has key support at ₹1,420 and resistance at ₹1,478. He predicted that a close above ₹1,478 could push the stock towards ₹1,525. Patel anticipates a trading range between ₹1,400 and ₹1,525 for the short term, offering a significant opportunity for those seeking to invest in stocks.

CDSL ended the day up 1.10% at ₹1,488, with a market capitalisation of ₹31,099 crore. The stock has risen 58.14% over the last six months and an impressive 125% over the past year, with around 43.88 lakh shares traded during Thursday’s session with a turnover of ₹652.33 crore.

Technical indicators suggest stable performance

The stock’s technical indicators are showing promising signs. The relative strength index (RSI) stands at 57.2, signalling that CDSL is neither overbought or oversold. Additionally, the stock is trading above its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages.

Ameya Ranadive, Senior Technical Analyst at StoxBox, believes that if CDSL can maintain current support levels and break above ₹1,585, the stock may reach immediate targets of ₹1,650 and ₹1,800. However, traders should exercise caution as a drop below ₹1,330 could nullify this positive outlook.

Market experts share cautious optimism

Osho Krishan, Senior Analyst at Angel One, noted that while CDSL is undergoing a corrective phase, its price action remains sideways with a positive tone. He pointed out that the stock has strong support at ₹1,300-₹1,350 and could see the next leg of its rally if it breaks through resistance at ₹1,540-₹1,570.

However, AR Ramachandran, a SEBI-registered analyst, is more cautious. He warned that a daily close below ₹1,348 might lead to a downside target of ₹1,254.

Key takeaways

  1. CDSL shares are expected to reach ₹1,525 in the short term.

  2. The stock rose 1.10%, with a market cap of ₹31,099 crore.

  3. RSI at 57.2 indicates neutral trading territory.

  4. Analysts remain bullish but advise caution for those planning to invest in stocks.