After an initial spike that saw the stock test multi-month highs, profit-taking pulled it back, but renewed buying interest has emerged, helping the stock reclaim key technical levels and regain its bullish footing.
Market participants are now closely watching OFSS as it consolidates near critical price zones, with analysts flagging the stock’s improving technical structure and rising volumes as signs of strength.
Traders are weighing whether the current setup offers an attractive entry point for a fresh leg of the rally or whether further consolidation is needed before a decisive breakout can occur.
Ajit Mishra, SVP of Research at Religare Broking, noted that “In line with the broader IT pack, OFSS has witnessed a strong recovery this week, accompanied by a noticeable surge in volumes. The stock has reclaimed its short-term moving averages, namely the 25-day and 50-day EMAs.”
He added that while some profit-taking is visible, “the overall positive bias is likely to sustain as long as it holds above Rs 8,600. For fresh upward momentum, a decisive move above Rs 9,300 could pave the way towards the previous swing high at Rs 9,775.”Echoing this constructive view, Hardik Matalia, Derivative Analyst at Choice Broking, pointed out that “the stock has witnessed a sharp spike in volumes and price action, indicating fresh buying momentum after a prolonged consolidation phase. Currently trading near 9137.50, the stock has broken past its short-term resistances and is attempting to sustain above key moving averages.”Matalia highlighted that “a close above the 200-day EMA Rs 8955 signals a structural turnaround, with the stock now eyeing higher levels. The next resistance is visible around the Rs 9,800–10,000 zone, which aligns with its recent price action and could serve as the immediate upside target. Sustaining momentum beyond this level would confirm a medium-term trend reversal.”
Both analysts emphasized the importance of risk management. According to Matalia, “the 8700 zone, close to the EMA cluster, acts as a strong support and should be kept as a stop-loss for risk management. As long as the stock holds above this level, the near-term outlook remains positive with potential upside towards Rs 10,000.”
Given the renewed optimism, traders are likely to continue adopting a buy-on-dips approach, keeping an eye on critical support at Rs 8,600 and resistance near Rs 9,775. A breakout above the Rs 9,800–Rs 10,000 zone could trigger a stronger medium-term rally, while failure to hold above support levels might invite further profit-taking.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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