Technical Momentum and Indicator Overview
CDSL’s current price stands at ₹1,433.90, down 2.02% from the previous close of ₹1,463.50, with intraday trading ranging between ₹1,421.00 and ₹1,466.90. The stock remains well below its 52-week high of ₹1,828.90 but comfortably above its 52-week low of ₹1,047.45. This price movement reflects a weakening momentum, corroborated by the technical trend downgrade from mildly bullish to mildly bearish.
The Moving Average Convergence Divergence (MACD) indicator presents a bearish stance on the weekly chart and a mildly bearish signal on the monthly chart. This suggests that the stock’s short-term momentum is weakening relative to its longer-term trend, signalling potential downside pressure. The Relative Strength Index (RSI), however, remains neutral with no clear signal on both weekly and monthly timeframes, indicating that the stock is neither overbought nor oversold at present.
Bollinger Bands on the weekly chart have turned bearish, reflecting increased volatility and a downward price bias, while the monthly bands remain sideways, suggesting consolidation over the longer term. The Know Sure Thing (KST) indicator aligns with this bearish sentiment, showing mild bearishness on both weekly and monthly charts.
Other technical tools such as the Dow Theory and On-Balance Volume (OBV) also reinforce the cautious outlook. The Dow Theory indicates a mildly bearish trend on the weekly timeframe with no clear trend on the monthly, while OBV shows mild bearishness weekly and no discernible trend monthly. Daily moving averages, however, continue to provide a mildly bullish signal, hinting at some underlying support in the short term.
Price Performance Relative to Sensex
Examining CDSL’s returns relative to the benchmark Sensex reveals a stark contrast. Over the past week, the stock has declined by 5.38%, significantly underperforming the Sensex’s modest 0.91% loss. The one-month performance is even more pronounced, with CDSL falling 11.33% compared to the Sensex’s 1.01% decline.
Year-to-date and one-year returns for CDSL are deeply negative at -18.47% and -18.01% respectively, while the Sensex has delivered a robust 9.70% gain over the same periods. This divergence highlights the stock’s recent struggles amid broader market strength.
However, the longer-term perspective is more favourable. Over three and five years, CDSL has delivered exceptional returns of 157.13% and 446.46% respectively, far outpacing the Sensex’s 43.27% and 85.52% gains. This underscores the company’s strong historical growth trajectory despite recent headwinds.
Patience pays off here! This Micro Cap from Fertilizers sector has delivered steady gains quarter after quarter. Now proudly part of our Reliable Performers list.
- - New Reliable Performer
- - Steady quarterly gains
- - Fertilizers consistency
Mojo Score and Market Capitalisation Insights
MarketsMOJO assigns CDSL a Mojo Score of 42.0, reflecting a cautious stance on the stock’s near-term prospects. The Mojo Grade has been downgraded from Hold to Sell as of 30 December 2025, signalling a deterioration in the stock’s technical and fundamental outlook. This downgrade aligns with the observed bearish technical signals and recent price underperformance.
The company’s Market Cap Grade is rated 3, indicating a mid-tier market capitalisation within the capital markets sector. This rating suggests moderate liquidity and investor interest but also highlights the stock’s vulnerability to market swings and sector-specific risks.
Technical Indicators in Detail
The weekly MACD’s bearish crossover indicates that the short-term momentum has shifted below the longer-term trend, a classic sign of weakening buying pressure. The mildly bearish monthly MACD suggests that this trend may persist over the coming weeks.
RSI’s neutral stance on both weekly and monthly charts implies that the stock is not currently in an extreme condition, which could mean that further downside or a reversal remains possible depending on market catalysts.
Bollinger Bands’ bearish weekly signal reflects that the price is trending towards the lower band, often interpreted as a sign of increased selling pressure and potential continuation of the downtrend. The sideways monthly bands indicate that the stock has been consolidating over a longer horizon, possibly awaiting a decisive breakout or breakdown.
KST’s mild bearishness on both timeframes supports the view of weakening momentum, while Dow Theory’s weekly mildly bearish signal confirms that the stock’s price action is not confirming a strong uptrend. OBV’s mild bearishness on the weekly chart suggests that volume trends are not supporting price advances, a warning sign for bulls.
Conversely, the daily moving averages’ mildly bullish signal may offer some short-term support, potentially limiting immediate downside but unlikely to reverse the broader bearish momentum without stronger buying interest.
Considering Central Depository Services (India) Ltd? Wait! SwitchER has found potentially better options in Capital Markets and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Capital Markets + beyond scope
- - Top-rated alternatives ready
Investor Takeaways and Outlook
Investors should approach CDSL with caution given the recent technical deterioration and the downgrade in its Mojo Grade to Sell. The combination of bearish MACD signals, weakening momentum indicators, and underperformance relative to the Sensex suggests that the stock may face further pressure in the near term.
However, the stock’s strong long-term returns and mildly bullish daily moving averages indicate that it retains underlying strength and could present opportunities for patient investors who are comfortable with volatility and sector-specific risks.
Market participants should monitor key technical levels, including support near the ₹1,400 mark and resistance around the recent highs near ₹1,470-1,470. A sustained break below support could accelerate the downtrend, while a recovery above resistance may signal a return to more positive momentum.
Given the mixed signals and the current mildly bearish technical trend, a cautious stance with close attention to evolving price action and volume is advisable.
Summary of Technical Ratings
To summarise, the technical landscape for Central Depository Services (India) Ltd is characterised by:
- MACD: Weekly Bearish, Monthly Mildly Bearish
- RSI: Neutral on both Weekly and Monthly
- Bollinger Bands: Weekly Bearish, Monthly Sideways
- Moving Averages: Daily Mildly Bullish
- KST: Mildly Bearish on Weekly and Monthly
- Dow Theory: Weekly Mildly Bearish, Monthly No Trend
- OBV: Weekly Mildly Bearish, Monthly No Trend
This constellation of indicators supports the recent downgrade to a Sell rating and highlights the need for investors to weigh risks carefully before initiating or adding to positions.
Conclusion
Central Depository Services (India) Ltd’s recent technical momentum shift reflects a broader cautionary tone in the capital markets sector. While the stock’s long-term fundamentals remain robust, the current technical signals point to a period of consolidation or potential decline. Investors should remain vigilant, balancing the stock’s historical outperformance against the present technical challenges and market conditions.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
