Data center proxy play Orient Technologies jumps 18% in one day, could head towards Rs 470 – News Air Insight

Shares of Orient Technologies soared 18% on Friday on the back of strong volume build-up and frenzied buying at lower levels. The stock has rallied 21% in the past 5 days. Orient Technologies, seen as a proxy play for data-centre and IT infrastructure themes, has been in a long consolidation over the past few months after losing nearly half its value from the highs.

Analysts say that at around Rs 416, the stock is holding firm near its short-term support zone of Rs 405–400, which suggests buyers are absorbing any dips.

“Technicals appear healthy. The relative strength index (RSI) is not yet overbought, leaving room for momentum to build. A decisive breakout above Rs 430 could push the stock toward Rs 455–470, while a drop below Rs 395 might signal short‐term weakness,” said Riyank Arora, technical analyst at Mehta Equities.

About the company

Beyond the chart setups, Orient offers data centre solutions, including servers, storage, networking hardware, backup and disaster recovery, cloud migration support, and managed services.In May 2025, Orient announced plans to deploy up to 6,000 GPUs in its data centre infrastructure under the IndiaAI mission, which aims to provide remote compute and AI services across the country. This move positions it as more than just an IT integrator—it edges it toward being part of the data processing backbone.

Importantly, the stock has shown strong volume build-up over the past 15 trading days, indicating accumulation. Such a pattern suggests institutional participation or at least growing conviction among active market participants.

Outlook

Orient’s push into data centre and AI infrastructure gives it exposure to one of India’s fastest-growing digital segments. India’s demand for data centers is set to more than double over the next three years and an investment of about Rs 90,000 crore ($10.1 billion) will be needed to meet the expansion, according to rating company ICRA.However, hurdles remain. The sector is capital-intensive, with high fixed costs for power, cooling, real estate, and regulatory compliance. Execution risk is significant, especially when moving from offering components and services to owning or operating infrastructure.Analysts say the GPU deployment is promising, but scaling it profitably will require securing long-term clients and maintaining high utilization.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)