Shares of Central Depository Services (India) Ltd (CDSL) have been on an extraordinary journey in 2024, delivering a staggering 96% return to investors. This multibagger stock, which has surged 1,334% over the last five years, is currently trading near the ₹1,800 mark. As of Monday, December 30, 2024, CDSL shares were trading flat at ₹1,780.80, following their previous session close of ₹1,777.50 on the NSE.
The stock hit an intra-day high of ₹1,794.80, further cementing its strong performance this year. The market capitalization of CDSL has reached an impressive ₹37,218.72 crore, marking a 46% gain over six months and a near doubling of its value in a year.
Key Metrics and Technical Indicators
- Moving Averages: CDSL shares are trading below the 5-day, 10-day, and 20-day moving averages, indicating short-term bearish momentum. However, they are comfortably above the 30-day, 50-day, 100-day, and 200-day moving averages, reflecting a solid long-term uptrend.
- Relative Strength Index (RSI): The RSI for CDSL stands at 48.9, indicating the stock is in a neutral zone, neither overbought nor oversold.
- Beta: The stock has a beta of 1.1, signaling higher volatility compared to the market average over the past year.
Expert Opinions on CDSL Stock
- A R Ramachandran, SEBI-Registered Analyst:
Ramachandran highlights a bearish sentiment for CDSL on daily charts. He identifies strong resistance at ₹1,840, warning that a daily close below ₹1,732 could see the stock decline to a near-term target of ₹1,600. - Kushal Gandhi, Technical Analyst at StoxBox:
Gandhi advises caution, citing profit booking and a weakening price momentum. With the RSI falling below median levels, Gandhi recommends avoiding new purchases or averaging down at the current price. - Jigar S Patel, Senior Technical Manager at Anand Rathi:
Patel notes a support level at ₹1,700 and resistance at ₹1,875. A decisive breakout above ₹1,875 could pave the way for an upward move to ₹1,950, but he expects the stock to trade between ₹1,700 and ₹1,950 in the short term.
Financial Performance in 2024
CDSL has demonstrated robust financial growth in 2024, underpinned by strong quarterly results:
- Net Profit Growth: CDSL reported a 49% rise in net profit for the September 2024 quarter, with profits climbing to ₹162 crore compared to ₹108 crore in the same quarter last year.
- Revenue Growth: Revenue for the quarter rose 55.5% year-on-year to ₹322.3 crore from ₹207.3 crore in Q2 2023.
These impressive figures highlight CDSL’s strong operational performance and growing market presence.
Outlook for CDSL Stock
- Bullish Case: For long-term investors, CDSL’s strong fundamentals, robust profit growth, and market dominance make it an attractive bet. A sustained break above ₹1,875 could lead to a rally toward ₹1,950 and beyond.
- Bearish Case: Short-term traders should be cautious of profit booking and resistance at higher levels. A breach of the ₹1,732 support level could lead to further downside.
Company Overview
Central Depository Services (India) Ltd is a SEBI-registered depository that facilitates the holding and transfer of securities in electronic form. It was established to offer a secure, reliable, and cost-effective depository system for all market participants. With an ever-expanding footprint and a strong focus on innovation, CDSL remains a key player in India’s financial ecosystem.
Conclusion
CDSL has delivered exceptional returns in 2024, nearly doubling investor wealth. While its long-term outlook remains bullish, caution is warranted in the short term due to technical resistance and profit booking. Investors should monitor key levels—₹1,700 as support and ₹1,875 as resistance—before making trading decisions.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult a financial advisor before making any investment decisions.
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