CDSL’s (Central Depository Services (India) Limited’s) stock gained last week after falling in the preceding three weeks. It now appears to have resumed the broader uptrend after a corrective fall. The stock bounced off the support band of ₹1,725-1,750. It rallied above a trendline resistance and the closing price on Friday was above both 20 and 50-day moving averages. Besides, the breakout of the trendline has confirmed an ascending triangle pattern. This chart set up indicates that CDSL’s share price is likely to appreciate to ₹2,080 in the short-term. So, traders can buy now at ₹1,874 and accumulate at ₹1,810. Keep initial stop-loss at ₹1,720. When the stock touches ₹1,950, tighten the stop-loss to ₹1,850. Raise the stop-loss further to ₹1,920 when CDSL crosses over ₹2,000-mark. Book profits at ₹2,080.
bl.Today’s pick: Stock to buy or sell, February 5, 2024
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)