Breakout Stock to Watch: Strong Volume Breakout Seen in This Depository Player That Holds an 80% Share of India’s Demat Accounts

Indian benchmark indices recovered from their Intraday lows on Monday, while stock specific activity remained strong. Central Depository Services (India) Limited (CDSL) was among the stocks in focus.

CDSL shares were trading 0.34 per cent higher at Rs 1,437 apiece. The stock has gained more than 10 per cent in July so far and has broken out of a triangular consolidation pattern on strong volumes.

The technical setup remains positive. The Relative Strength line has moved above its previous high, indicating outperformance against the broader market. CDSL is trading above its 20, 50, 100 and 200 day moving averages and stands 13.11 per cent above its 50 DMA. The moving average ribbon is also trending upwards, while the weekly Bollinger Bands have started to widen, suggesting an expansion in price momentum.

The daily MACD remains in an uptrend and has rebounded after taking support near its nine period average. The 14 period RSI has returned to the bullish zone, while the Elder Impulse System has formed a strong bullish bar. Overall, the technical indicators support the recent breakout and point to a positive bias.

CDSL is a SEBI regulated Market Infrastructure Institution that began operations in 1999. It enables investors to hold and transfer shares, bonds, Mutual Fund units and other securities electronically through demat accounts. The company also supports trade settlements, pledging, corporate actions and e voting through its network of Banks, brokers and other Depository Participants. As of March 31, 2026, CDSL maintained more than 18 crore demat accounts, representing around 80 per cent of India’s depository accounts (80% market share in terms of the number of depository accounts in India.)

Disclaimer: The article is for informational purposes only and not investment advice.