NSDL shares drop 10% in two days; time to buy or wait?

Shares of National Securities Depository Ltd (NSDL) extended their decline in Thursday’s trade, marking the second straight session of losses. The stock fell 3.32 per cent to touch a day low of Rs 1,166. At this level, it has plunged 9.53 per cent over the past two trading sessions. Despite the pullback, the scrip -- which listed on August 6 -- still trades 45.75 per cent above its initial public offering (IPO) price of Rs 800.

For the June 2025 quarter (Q1 FY26), the company reported a 15.16 per cent year-on-year (YoY) rise in consolidated net profit to Rs 89.62 crore, compared with Rs 77.82 crore in the same quarter last year. However, revenue from operations declined 7.49 per cent to Rs 312.02 crore from Rs 337.29 crore a year ago. Total expenses fell to Rs 228.03 crore.

Analysts attribute the recent weakness to profit booking after a strong debut, noting that the stock faces near-term pressure below Rs 1,220. Key support is pegged at Rs 1,125, while resistance is at Rs 1,250. A breakout above Rs 1,250 could open the way for gains towards Rs 1,300. They suggest long-term investors can hold, while fresh entries should be considered only on dips or once the stock moves decisively above Rs 1,220.

“After a strong market debut, NSDL is experiencing profit booking,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. “Long-term investors may hold their positions. With Q1 results largely flat, the coming quarters need to be watched for signs of performance improvement. Those planning to enter now can look to buy on dips.”

Drumil Vithlani, Technical Research Analyst at Bonanza, said, “The hourly chart shows NSDL losing momentum after a sharp rally earlier this month. It is trading below the short-term EMA of Rs 1,220, suggesting near-term weakness. Investors holding from lower levels could book partial profits and trail stop loss to Rs 1,150. Fresh buying is best avoided until the stock reclaims and sustains above Rs 1,220 with strong volumes.”

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, added, “Immediate support is around Rs 1,125, and resistance at Rs 1,250. A decisive move above Rs 1,250 could push the stock towards Rs 1,300. In the short term, it is likely to trade between Rs 1,125 and Rs 1,300.”