Todays Pick

CDSL (₹862.2): Buy

Akhil Nallamuthu BL Research Bureau | Updated on May 17, 2021

The stock of Central Depository Services (India) Limited (CDSL) broke out of a range on Monday, opening the door for further upside. Thus, traders can take fresh short-term long positions in the stock.

The scrip established an uptrend in March last year on the back of the support at ₹180. Since then, it has consistently gaining with intermittent price corrections and the rally continued in 2021 as well. Even though there was a brief sluggish period in January, the stock regained the momentum in February as against the support at ₹480. The uptrend continued and notably, the stock has constantly been bouncing off the 21-day moving average.

Nevertheless, since the beginning of May, the stock has been moving sideways i.e., largely fluctuating between ₹775 and ₹830. However, on Monday, it rallied past the resistance at ₹830 and closed at ₹862.2, confirming the breakout. Consistent with this, indicators like the RSI and the MACD on the daily chart remain in the positive territory. Considering these factors, traders can go long in the stock with stop-loss at ₹840; target can be ₹895.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on May 18, 2021

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