OFSS share price surges 7%, extends rally to 4th day on Oracle earnings. Do you own?

OFSS share price: Shares of Oracle Financial Services (OFSS), a subsidiary of Wall Street-listed Oracle, saw another day of strong buying on Thursday, following an over 10% rally in trade a day ago despite the company's clarification that its parent company's financial performance has no bearing on its business.

OFSS parent Oracle's share price jumped 36% on Wednesday, its biggest gain since 1992, after posting a strong set of earnings and a robust outlook, which rubbed off on its subsidiary's stock.

Oracle posted quarterly revenue growth of 12% in dollar terms and 11% in constant currency to $14.9 billion. The rally in Oracle shares also temporarily turned co-founder Larry Ellison into the world’s richest person, with the tech magnate passing Elon Musk for a few hours.

The company signed four multibillion-dollar contracts with three different customers in the quarter and expects to sign up several additional customers in the coming months, she added, pushing remaining performance obligations above $500 billion, as per a Bloomberg report.

However, OFSS said that Oracle's earnings statement has no direct impact on its business.

Apart from Oracle earnings, IT stocks, including OFSS, are also in an uptrend on hopes of a US Federal Reserve rate cut at the upcoming policy meeting next month.

The Fed is widely anticipated to cut interest rates by 25 basis points at its meeting next Wednesday, while investors also priced in a slim possibility of a 50-basis-point reduction, as per the CME FedWatch tool.

OFSS share price trend

OFSS shares surged 7% in opening deals today, but the rally soon fizzled out, and the stock was trading flat. However, it remains in the uptrend for the fourth straight day, taking its gains to 20%.

OFSS share price hit a high of ₹9948 and a low of ₹9116.55 in intraday deals today.

“OFSS attempted a breakout at ₹9,775 but faced heavy resistance, leading to a failed move. The rejection highlights supply pressure at higher levels, with the current session’s open equaling the high at ₹9,950, further confirming the weakness. For bulls to regain control, the stock must trade and sustain above ₹9,950, which will be the key trigger for momentum,” said Anshul Jain, Head of Research at Lakshmishree Investment.

“On the downside, long liquidation could extend until the strong support zone near ₹8,525. Until strength is reclaimed, the stock may remain under pressure, making ₹9,950 a crucial level to watch for any bullish reversal.” Jain added.

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