CDSL stock eyes 'cup and handle' pattern breakout; can it hit ₹3,000-mark?

CDSL stock is seen trading near the 'cup and handle' pattern resistance level; a breakout above ₹1,828 levels shall open the doors for a further rally at the counter.

The share price of CDSL has appreciated by nearly 73 per cent in the last three months, from a low of ₹1,047 in March to the present ₹1,805 levels. Further, in late May, the stock had given a fresh breakout on the daily scale.  More importantly, the last six months chart shows the formation of a 'Cup and Handle' pattern on the daily scale. In general, the 'Cup and Handle' pattern is considered as a bullish chart pattern, with a likely upside breakout which also signals the start of a fresh bull run at the particular counter.  CDSL stock chart shows the formation of 'Cup' between January - early June period and thereafter in the last one month the formation of a 'Handle'.  READ STOCK MARKET LATEST UPDATES LIVE  Technically, a bullish breakout will be confirmed after the stock breaks above the 'Cup and Handle' resistance line; which in the case of CDSL stock stands at ₹1,828 levels.  Theoretically, post a breakout the stock at first tends to rise up to the depth of the 'Handle’ and in the best case scenario the rally stretches till up to the depth of the 'Cup'.  ALSO READ | 5 technical reasons why Jio Financial Services stock can rally another 22%  Against this background, here's what to expect from CDSL stock going ahead. 

CDSL

Current Price: ₹1,805  Upside Potential: 74.5%  Support: ₹1,730; ₹1,655  Resistance: ₹1,962; 2,600  The depth of 'Handle' in case of CDSL stock is around ₹160 or 8.7 per cent; thus technically post breakout from the chart pattern - the first target for CDSL stock could be around ₹1,962 - ₹1,990 levels.  In case the breakout is accompanied with stronger volumes, the stock is likely to extend the rally in the coming months. As such, the stock could rally up to the depth of the existing 'Cup' which is around ₹768 - thus implying a potential upside target around ₹2,600 levels.  ALSO READ | 10 large-cap stocks to bet across sectors that may gain up to 32% in H2CY25  In terms of per centage, the depth stands around 72 per cent. This could be the best case scenario, wherein the stock could rally past the ₹3,000-mark, to levels of around ₹3,150, suggests the 'Cup and Handle' chart pattern.  Going ahead, the near-term bias for CDSL stock is likely to remain positive as long as the stock trades above ₹1,655 levels, with near support expected around ₹1,730 levels.  ALSO READ | 5 technical reasons why Jio Financial Services stock can rally another 22%