CDSL shares up 51% in 2024 so far; what's next for this stock?

Central Depository Services (India) Ltd shares settled slightly lower on Monday. The stock shed 0.09 per cent to close at Rs 1,372.50. At this price, it gained 50.96 per cent on a year-to-date (YTD) basis.

The stock, which is listed on NSE, turned ex-bonus in a ratio of 1:1 on August 23 this year. Also, the CDSL board announced its first bonus issue of shares in July this year.

A few technical analysts remained divided on the counter. "CDSL presents a good buying opportunity. 1,348 would be the near-term support level. Once we see the stock moving above Rs 1,430, this would get in a trend," Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, told Business Today TV.

In contrast, Sebi-registered research analyst AR Ramachandran said CDSL stock price is bearish on daily charts. "Strong resistance will be at Rs 1,428. A daily close below support of Rs 1,348 could lead to a downward target of Rs 1,254 in the near term," he stated.

The counter traded lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs, Trendlyne data showed. The counter's 14-day relative strength index (RSI) came at 40.3. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Around 42.34 lakh shares of CDSL changed hands today for a traded value of Rs 588.64 crore. At these figures, market capitalisation (m-cap) came at Rs 28,685.25 crore.

CDSL is a depository registered with market regulator Sebi. It was set up to provide convenient dependable and secure depository sendees at affordable cost to all market participants.

The company derives its operating income from the fixed annual charges collected from the registered issuer companies and transaction-based fees collected from depository participants.

As of August 25, 2024, the promoter and promoter group jointly held a 15 per cent stake in the company.