I have not studied CDSL too much in details but basically it should follow market mood. If markets are buoyant, narratives will gather pace and stock prices will rally. Business wise, it remains a solid business, but because of the effervescence, it was taken to unsustainable levels in terms of valuations. When these things happen and mini-bubbles are formed, a pin is always waiting to prick them and then the pendulum swings in opposite direction and stock gets beaten more than it deserves to be… That creates an opportunity for short to medium term trades. Sometimes longer term too… And after some more drubbing and then some respite in form of sideways consolidation, stocks often tend to move up… That is oft repeating story in many stocks over different time periods.
Seems to be such a case in CDSL… How it plays out needs to be seen, but these kind of opportunities can be played with low allocations to get some gains and positions should be evaluated from time to time.
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