The stock of Central Depository Services (India) Limited (CDSL) has been depreciating for nearly a month. But over the past few sessions, it has shown some recovery. This is because of the support at ₹1,525. Also, ₹1,600 is another important support, making the price band of ₹1,525-1,600 a good demand zone. So, the likelihood of a rally from the current level is high. In the near-term, we anticipate the price to rise back to retest ₹1,970. Hence, participants can buy the stock of CDSL now at ₹1,603 and accumulate if the price dips to ₹1,550. Place initial stop-loss at ₹1,490. When the price hits ₹1,730, revise the stop-loss to ₹1,600. Tighten the stop-loss further to ₹1,780 when the stock touches ₹1,840. Book profits at ₹1,970.

Video Credit: Businessline

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)