After a consolidation phase, the stock has regained momentum, rising 3.85% over the past week and 1% in the last month. Market participants are now watching closely to see if this renewed strength can push the counter back toward its all-time high.
Can CDSL shares reclaim their all-time high soon?
Shitij Gandhi, Senior Research Analyst – Technicals at SMC Global Securities, said, “After weeks of sideways action, the stock has finally broken out of its symmetrical triangle trading pattern, catching the market’s attention. Backed by a burst of volumes, the move signals that buyers are regaining control. Holding above the crucial zone of 1,500-1,520, the stock now eyes 1,650 first, with potential to stretch toward 1,750-1,800 levels.”
He added that the breakout marks a shift in sentiment, noting that “dips are likely to attract buyers, while only a fall below 1,500 would dull the optimism.”
Amruta Shinde, Research Analyst at Choice Broking, observed that “CDSL is currently trading at Rs 1,588.30 and is consolidating within a long-term symmetrical triangle formation. The stock has recently rebounded from the lower boundary, signaling renewed strength. It continues to trade comfortably above its 20-day, 50-day, and 200-day EMAs, highlighting a firm uptrend.”
She further pointed out that “the RSI at 57.88 is inching higher, suggesting more upside momentum. A sustained move above Rs 1,625 could trigger a rally towards Rs 1,725-1,814, while crucial support levels are placed at Rs 1,486 and Rs 1,418.”
Comparing peers, Shinde added: “NSDL, being a relatively new listing, is displaying a sideways-to-bullish structure. The stock is finding support near its 20-day EMA, which is a key short-term level. A decisive close above Rs 1,382 could open room for an up-move towards Rs 1,500 and Rs 1,600. However, a breakdown below Rs 1,269 (20-day EMA) may expose the stock to downside levels of Rs 1,200 and Rs 1,123.”
She concluded that “CDSL offers a more established and technically stronger setup given its long-term trend, higher liquidity, and sustained trade above key moving averages. NSDL, while promising, still needs to build a track record post-listing and confirm a stronger trend.”
Another expert, Vatsal Bhuva, Technical Analyst at LKP Securities, noted: “On the daily timeframe, short-term bullish signals are evident as the RSI shows positive divergence and the stock trades above its 20- and 50-day EMAs. A sustained close above Rs 1,620 could spark a brief rally toward the Rs 1,800 zone.”
He added, “From a top-down perspective, the stock has staged a strong rebound after finding support near the 61% Fibonacci retracement on the monthly chart, drawn from the 447 low to the Rs 1,989 high. However, Rs 1,800 remains a crucial resistance, and a confirmed trend reversal will only come with a decisive break above this level.”
Bhuva advised traders to “place a stop-loss at Rs 1,510 and aim for Rs 1,800 if the stock closes above its resistance at Rs 1,620.”
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(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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