Top pick: Sumeet Bagadia recommends this stock to buy on Budget Day, February 1 | Stock Market News
Sumeet Bagadia of Choice Broking has recommended Central Depository Services (India) Ltd (CDSL) stock to buy on the Budget day 2025, February 1. The stock market expert has given a target price of ₹1,440/ ₹1,540, sees an upside potential between 10-12%.
“CDSL is currently trading at ₹1,300 after correcting 37.56% from its all-time high. Recently, the stock has shown signs of reversal from its demand zone near ₹1,200, supported by significant trading volume. This suggests the potential for further upward momentum, with key resistance levels and targets at ₹1,440 and ₹1,510. On the downside, strong support is evident around ₹1,200,” Bagadia said in a report.
However, the stock market expert believes that the CDSL stock is trading above crucial Exponential Moving Averages (EMAs), including the 20-day and 50-day, reinforcing a bullish outlook and indicating the possibility of sustained price appreciation.
The Relative Strength Index (RSI) is currently at 41, reflecting a downward trend but also signalling that the stock is approaching oversold territory, potentially setting the stage for a rebound.
“A prudent strategy would be to consider buying opportunities on dips around ₹1,264, with a well-defined risk management approach. Given the technical setup and current market conditions, CDSL presents a promising buying opportunity for traders targeting ₹1,440 and ₹1,510, provided that appropriate stop-loss measures are implemented,” he added.
CDSL stock performance
CDSL share price has declined more than 16 per cent in the past five trading sessions on National Stock Exchange (NSE). The decline came after the company released its December quarter results over the weekend.
CDSL’s revenue saw a 14 per cent drop, primarily due to lower transaction charges, online data charges, and other income.
While other expenses decreased, the impact was partially offset by higher employee costs and increased spending on computer technology.
Margins shrank by 424 basis points sequentially, settling at 57.8 per cent.
A sharp decline in other income, which nearly halved, contributed to a 20 per cent quarter-on-quarter fall in net profit.
The number of net accounts opened during the quarter dropped to 92 lakh from 1.18 crore in the previous quarter, while transaction charge income declined to ₹59 crore from ₹83 crore in September.
