With India's equity markets experiencing a robust IPO season and significant growth in demat account additions, select market infrastructure stocks are drawing considerable attention. National Securities Depository Ltd (NSDL), Protean eGov Technologies Ltd, and Central Depository Services (India) Ltd (CDSL) are prominent among these, with traders closely monitoring their movements.
Jigar S Patel, Senior Technical Research Analyst at Anand Rathi Share and Stock Brokers Ltd, offers a detailed technical outlook for these stocks ahead of upcoming trading sessions:
National Securities Depository (NSDL)
NSDL is currently undergoing a period of consolidation, trading within the Rs 800–840 range. The stock's position below its key moving averages suggests a weak short-term trend, indicating that buying momentum has yet to significantly improve.
A decisive breakout above the Rs 840 resistance level is essential to trigger fresh buying interest and signal a potential recovery. Sustaining above this level would strengthen the bullish outlook. Conversely, Rs 800 serves as the immediate support; maintaining this level is critical to preserve the existing consolidation structure. A drop below Rs 800 could lead to increased selling pressure. Traders are advised to await a clear breakout above Rs 840 before initiating any new bullish positions.
Protean eGov Technologies
Despite some recent gains, Protean eGov appears weak on the daily chart. While there's evidence of buying interest, it has not yet solidified into a meaningful trend reversal. The stock finds immediate support at Rs 480, with Rs 540 acting as a key resistance point.
Should the stock hold above Rs 480, a temporary bounce towards Rs 540 might occur. However, this should not be interpreted as a new buying opportunity. A strong breakout above Rs 540 is required to improve the bullish sentiment and attract fresh buying. Until then, the stock is likely to remain under pressure, making a 'wait and watch' strategy prudent.
Central Depository Services (India) (CDSL)
CDSL exhibits a positive trend, sustaining above all its key moving averages, which points to continued buying interest. The stock is firmly holding above its critical support zone of Rs 1,350, a crucial factor for maintaining its bullish structure.
The immediate resistance for CDSL is pegged at Rs 1,453. A decisive breakthrough above this level, ideally accompanied by strong trading volumes, could ignite fresh buying interest and open the possibility for further upside. Until such a breakout occurs, the stock may continue to consolidate below this resistance. Traders should closely monitor whether the stock sustains above Rs 1,350, as a breach of this level could weaken the overall setup. Fresh buying is recommended only above Rs 1,453.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.