All time high - CDSL- Techno-Fundamental analysis

2023年11月30日

CDSL

Trade idea - Swing trade/short term momentum capturing

- Entry - Immediately after market open
- Stoploss - 1860 (3-4%)
- Position sizing - 20% of the capital
- Target - 2270 (20% of the breakout)

Catalyst behind

- Finance sector as a whole have come out with great results.
- Reserve bank of India with their new policy for banks have created a major impact on finance
sector also.
- Quarterly diluted EPS - 35% up from previous years same quarter (we usually take diluted eps
for concentrated analysis and the reason we compare from previous years quarter - because
to hinder one time extraordinary earnings on sale of real estate or machinery)
- Annual diluted EPS - 150% up from past 3 years (2020 2021 2022)
- Return on equity - 27% (considered great as its above average of 17%)
- Total revenue - 35% up from previous years same quarter (record high earnings)

Technical analysis

- RSI weekly - above 60
- Price is above all trend moving averages - 20dma and 50dma
- Bollinger band - Squeeze open (volatility contraction)

Happy trading