Can CDSL reach the 2000 mark in the short term? Discover the target from a short to medium-term perspective for CDSL!

Central Depository Services Limited (CDSL), a cornerstone of the capital market structure, stands as a formidable market infrastructure institution (MII) in India. As one of the nation’s two depositories, CDSL plays a pivotal role, offering a suite of indispensable services to various market participants, including exchanges, clearing corporations, depositor participants, and both issuers and investors alike.

Distinguished by its business segments encompassing Depository, Repository, and Centralized Record Keeping (Data Entry and Storage), CDSL has etched its mark on the financial landscape. A testament to its influence is the staggering 9.62 crore demat accounts it currently holds, solidifying its position as the pioneering depository in the country.

Recent market dynamics have propelled CDSL to new heights, with the stock achieving a record-breaking closure at an all-time high. A significant catalyst for this surge was the breach of a six-week tight flat base just two weeks ago, catapulting the stock into a remarkable rally, amassing a remarkable 46% gain over a mere three-week period.

Analysts employing the CANSLIM investing strategy find CDSL to be an embodiment of the method’s key characteristics. The stock’s performance is underscored by consistently above-average trading volumes over the last two weeks. Positioned strategically above all long-term averages, the stock boasts an impressive 34.12% lead over the 50-day moving average and an even more remarkable 62.37% advantage over the 200-day moving average.

Technical indicators further fortify the bullish narrative. The Relative Strength Index (RSI) comfortably resides in the strong bullish zone, while the Moving Average Convergence Divergence (MACD) signals a robust bullish momentum. Elder’s Impulse System paints a picture of strength with the formation of resolute bullish bars.

Having conquered previous resistance levels with its new high, CDSL emerges as a stock in a compelling upward trajectory. Key technical indicators, including the KST and Stochastic oscillators, align in a bullish configuration. Notably, the Relative Price Strength (RS) rating stands at an impressive 84, signaling significant outperformance.

In summary, CDSL stands tall in a robust bullish trend, having reached an unprecedented lifetime high within the Rs.1750-1850 range. Prudent investors are advised to maintain a stop loss at Rs.1680, with a medium-term target set at Rs.2100 and a short-term target positioned at Rs.2040. As CDSL continues to chart its upward trajectory, it beckons investors to ride the waves of its remarkable success.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.