OFSS shares surge 11% in two days, hit record high on strong parent company results

In today’s trade, the IT stock surged 7.5% to hit a record high of Rs 9,400 on the BSE.

The stock’s rise follows Oracle Corp.’s announcement of better-than-expected bookings and new partnership deals with tech rivals.

Oracle’s total remaining performance obligations, a measure of future contracted sales, increased by 44% to $98 billion for Q4 of 2024, significantly surpassing the average estimate of $73.9 billion.

Revenue from Oracle’s cloud unit, which rents computing power and storage, rose by 42% from last year to $2 billion. Total revenue increased by 3.3% to $14.3 billion.

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OFSS shares also surged as investors cheered the growing demand for the company’s relatively low-cost cloud infrastructure services from artificial intelligence applications.

Oracle has been expanding its cloud infrastructure unit, expected to drive growth by renting out cloud computing and storage to companies, despite competition from Alphabet’s Google, Microsoft, and Amazon.com. Oracle’s cloud infrastructure, pitched as a less-expensive option, has attracted business from venture capital-funded generative AI startups, including Elon Musk’s xAI.

At 11:55 am, the stock was trading 7% higher at Rs 9,354.8 on the BSE. The stock has delivered multibagger returns, rallying over 115% year-to-date and surging 150% in the past 12 months.

In technical terms, the relative strength index (RSI) of the stock is currently at 72.6. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. Additionally, the MACD is at 39.8, which is above its center and signal line, this is a bullish indicator.

OFSS stock price is higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages.

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