Orient Technologies share price surged as much as 17% in intraday trade on the BSE on Friday, 11 September, looking set to extend gains for the second consecutive session.
Orient Technologies shares opened at ₹240 against their previous close of ₹234.75 and jumped as much as 17% to an intraday high of ₹274.70. In the previous session, the stock rose by 2.3%.
Why is Orient Technologies share price rising?
The sharp jump in Orient Technologies share price has followed the company’s announcement about the expansion of its cybersecurity business.
In an exchange filing on 10 September, Orient Technologies said it is expanding its cybersecurity business after the signing of a $3.15 million, three- year contract with Securonix, with additional investments planned as the business scales, taking the total investment to approximately $5 million over the course of the expansion.
Under the strengthened relationship, Orient will take on an expanded mandate as Securonix’s exclusive value-added distributor (VAD) and joint go-to-market partner in India, while building capabilities across implementation, professional services, technical support, managed security and SOC enablement.
“Our expanded relationship with Securonix represents the next stage of Orient’s cybersecurity journey. What began as a managed security relationship is evolving into a broader engagement spanning distribution, implementation, professional services and security operations. The contract and planned investments reflect our commitment to building the talent, capabilities and partner ecosystem required to scale this business,” said Ajay Sawant, Chairman and Managing Director, Orient Technologies.
Orient Technologies share price trend
The stock is down 34% year-to-date, compared to a nearly 13% fall in the equity benchmark Sensex.
It hit a 52-week high of ₹467.23 on 7 October last year and a 52-week low of ₹222.10 on 30 March this year.
Vipin Kumar, AVP-Research at Globe Capital Market, pointed out that Orient Tech has been trading in a volatile, range-bound manner since its listing.
Kumar underscored that the recent rebound from the ₹220– ₹225 support zone is likely to extend toward the ₹290– ₹300 level in the near term.
“Given its current chart structure, we advise traders to accumulate this stock on dips near the lower support band. Existing investors and traders should hold their positions for a target resistance zone of ₹290– ₹300,” said Kumar.
Aditya Thukral, founder and analyst at AT Research and Risk Managers, said Orient Technologies has been in a downtrend with a clear formation of lower highs and lower lows.
Thukral highlighted that each and every bounce is finding sellers, which drags the prices lower, and it creates fresh lows.
“There is no sign of bulls coming back soon in the stock, and investors should refrain from initiating any long positions in the stock. Moreover, the stock is continuously sustaining below all the major EMA’s, which is another negative sign,” said Thukral.
“Clearly, there is no buying interest, and a continuous distribution is seen in the stock. Existing investors should look for exit opportunities in the stock in any bounce,” Thukral said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
