Kumar, this is very simple. Here are my functions:
function [Passband] = DPSK_mod(Baseband)
%%The DPSK reference phase
dk_1 = 1 ;
N = length(Baseband);
%%The DPSK feedback loop
for j = 1 : N
Passband(j) = not(xor(dk_1,Baseband(j)));
dk_1 = Passband(j) ;
end
%% The Amplitude level shifter
Passband = 2*Passband -1
%%% The demodulator
function [Baseband] = DPSK_demod(Passband)
%% The Amplitude level recovery
Passband = (Passband + 1)/2;
%%The DPSK reference phase
dk_1 = 1 ;
N = length(Passband);
%%The DPSK feedback loop
for j = 1 : N
Baseband(j) = not(xor(dk_1,Passband(j)));
dk_1 = Passband(j) ;
end