CDSL share price jumps almost 9% to hit a 52-week high; what should investors do? Experts weigh in
CDSL share price jumped almost 9 per cent to hit its fresh 52-week high of ₹1,865.40 in morning trade on NSE.
CDSL (Central Depository Services) share price jumped almost 9 per cent to hit its fresh 52-week high of ₹1,865.40 in morning trade on NSE on Thursday, December 5, in an otherwise weak market. CDSL share price opened at ₹1,740 against its previous close of ₹1,718.60 and jumped as much as 8.5 per cent to the level of ₹1,865.40. Around 11:30 am, the stock traded 7.15 per cent higher at ₹1,841.55 on the NSE. It is the stock's second consecutive day of gains; in the previous session, it rose 3.3 per cent.
CDSL Share price trend
Shares of Central Depository Services have been on a roll this year. As of December 4 close, the stock has surged about 89 per cent year-to-date.
It hit a 52-week low of ₹811 on March 20 this year. If we consider today's high of ₹1,865.40, the stock has surged 130 per cent from its 52-week low level in less than nine months.
On a monthly scale, the stock has been in the green since June this year, gaining 10 per cent in December so far.
Should investors buy, sell or hold the stock?
Robust Q2 earnings have been one of the key triggers behind the recent rise in the stock. The company's Q2FY25 consolidated profit jumped nearly 49 per cent while total income surged 56 per cent year-on-year driven by higher IPO and corporate action revenue (nearly doubled), strong KYC revenue, and seasonal gains from e-voting.
Abhishek Pandya, a research analyst at Stoxbox, highlighted that the addition of 11.8 million demat accounts during the quarter pushed CDSL’s market share to 78.3 per cent, capturing 90 per cent of incremental market share.
"The management highlighted its focus on leveraging technology to improve service delivery and expand its market share in both the Demat and insurance repository segments. Hence, with a growing demat account base underpinning the depository business and the ongoing financial growth in India, CDSL is well-positioned for continued growth, making it an attractive medium- to long-term investment opportunity," said Pandya.
Experts have positive views on CDSl stock due to its compelling technical setup and prevailing market sentiment.
Mandar Bhojane, an equity research analyst at Choice Broking, believes CDSL presents an attractive risk-reward profile for traders seeking to capitalise on its upward trajectory.
He underscored that CDSL shares have demonstrated a strong bullish breakout from an ascending triangle pattern on the daily chart, accompanied by a significant uptick in trading volume. This breakout, often considered a reliable continuation pattern, has increased the stock price by 15 per cent, signalling robust investor confidence.
"The move positions CDSL for potential short-term targets of ₹2,000 and ₹2,100, supported by strong technical indicators," said Bhojane.
"The stock trades comfortably above all key exponential moving averages (EMAs), reinforcing the positive price structure and indicating sustained bullish momentum. Additionally, the Relative Strength Index (RSI) at 76.9 is trending upward, suggesting strong buying interest and a continuation of the current uptrend. This momentum, combined with the stock's solid support base, enhances its appeal to traders looking for favourable opportunities," Bhojane said.
Bhojane sees immediate support at ₹1,700, offering potential buying opportunities on dips. He suggests traders maintain a stop loss at ₹1,650 to manage risk effectively.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, CDSL has exhibited a well-defined price consolidation within a broad range of ₹1,675 to ₹1,350 for an extended period.
This rangebound behaviour indicated indecision among market participants, with buyers and sellers finding equilibrium within this zone.
However, the stock recently broke out above the upper boundary of ₹1,675, signalling a shift in sentiment and the potential for a strong upward trend. Following this breakout, the stock trades near the ₹1,850 level, confirming sustained bullish momentum.
"From a technical perspective, the breakout target is typically twice the size of the consolidation range. In this case, the range spans ₹325 ( ₹1,675 - ₹1,350), and a two times projection adds ₹650 to the breakout level, setting a potential target of 2,325 over the next three to four months," said Patel.
"The breakout also reflects increased demand for the stock, suggesting continued upside potential. Traders and investors could view any pullback towards the ₹1,750 zone as an attractive opportunity to initiate long positions, aligning with the broader bullish trend. This approach ensures an optimal risk-reward ratio while capitalizing on the momentum generated by the breakout," Patel said.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, pointed out that CDSL is in the classical move.
He said that on the daily chart, the stock has witnessed a breakout of a long consolidation formation, and on the weekly chart, it has given a breakout of a symmetrical triangle formation with strong volume.
MACD (moving average convergence divergence) supports the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.
"The structure of the counter is very lucrative as it trades above its all-important moving averages. An investor can take a position at the current level of ₹1,820 with a stop loss of ₹1,600 for the target of ₹2,050 or ₹2,200 in the near term to short term," said Gour.
Read all market-related news here
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High