Featured News Headlines
- 1 CDSL Stock Analysis: EMA Support and RSI Signal Strong Uptrend
- 2 Rising Triangle Pattern Signals Bullish Continuation
- 3 Strong Technical Structure Confirmed by Moving Averages
- 4 Momentum Indicators Support the Bullish Outlook
- 5 Volume and Market Activity Reinforce Strength
- 6 Technical Setup and Risk Management
CDSL Stock Analysis: EMA Support and RSI Signal Strong Uptrend
Choice Equity Broking has issued a ‘Buy’ recommendation on Central Depository Services (India) Ltd (CDSL) at ₹1,624, setting a target price of ₹1,832 — implying an upside potential of around 13%. The brokerage placed a stop-loss at ₹1,520, noting that the stock’s technical setup indicates strong bullish momentum. On Wednesday, CDSL shares closed 3.32% higher at ₹1,654, continuing to attract investor interest.
Rising Triangle Pattern Signals Bullish Continuation
CDSL is currently forming an Ascending Triangle pattern on the charts — a bullish technical formation suggesting potential upward breakout. The stock has been consolidating near upper resistance levels while both momentum and trading volume show signs of strengthening.
Choice Equity highlighted that such patterns often reflect accumulation phases and renewed investor optimism. The setup is supported by a favorable price structure and steady volumes, providing what the firm calls a “high-probability entry zone.”
Strong Technical Structure Confirmed by Moving Averages
Technically, CDSL remains robust, trading above its 20-, 50-, and 200-day Exponential Moving Averages (EMA) — a clear confirmation of a well-established uptrend. The brokerage noted that a decisive breakout above ₹1,650 could further strengthen positive momentum, potentially accelerating the move toward the ₹1,832 target.
On the downside, the 200-day EMA continues to act as a reliable support level, reflecting sustained buying interest at lower prices. Moving averages in this context serve as dynamic support and resistance zones, validating the overall trend direction.
Momentum Indicators Support the Bullish Outlook
The Relative Strength Index (RSI) currently sits at 64 and is trending upward — indicating healthy momentum without reaching overbought territory. An RSI reading below 70 suggests that there is still room for further upward movement.
According to Choice Equity, the rising RSI reflects strengthening buyer momentum and suggests that the bullish trend could continue without immediate risk of reversal. When combined with increasing volume, this reading provides a reliable bullish signal.
Volume and Market Activity Reinforce Strength
On Wednesday, CDSL shares gained 3.32% to close at ₹1,654, marking a significant step toward the target price. The accompanying increase in trading volume confirms stronger investor participation and adds credibility to the upward move.
The stop-loss at ₹1,520, positioned below the 200-day EMA, offers a clear risk management reference. A breakdown below this level would invalidate the bullish setup and warrant a reassessment of positions.
Technical Setup and Risk Management
CDSL’s technical chart presents a solid bullish structure backed by multiple indicators — the ascending triangle pattern, EMA alignment, and positive RSI momentum all point toward sustained strength.
Choice Equity’s target of ₹1,832 represents a 13% upside from current levels, supported by favorable technical signals. However, holding above the ₹1,650 breakout zone remains crucial for this scenario to play out.
Investors should weigh both the breakout potential and the downside risk below ₹1,520, ensuring disciplined position management. While technical signals remain strong, fundamental and market factors should also be considered before making trading decisions.
