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The stock of Central Depository Services Limited (CDSL) registered a fresh three-year high of ₹406 on Wednesday before wrapping up the session slightly lower at ₹399.8; this has increased the probability of the scrip scaling new peaks in the forthcoming sessions.
The stock that fell over 40 per cent from its then peak of ₹301.8 during February and March, found its bottom at ₹179.8. It began to rally from that level and now the price has increased more than two times. The scrip has been forming higher highs and higher lows, and consistently bouncing off the 21-day moving average, indicating a strong uptrend.
Supporting the bull trend, the relative strength index in the daily chart is showing fresh uptick and it lies above the midpoint level of 50. The moving average convergence divergence indicator in the daily chart lies in the positive zone and is turning its trajectory upwards. Considering the above factors, traders hunting for short-term entries can buy the stock with stop-loss at ₹386 and look for a potential target of ₹420.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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