Stock to Watch : Oracle Financial Services, a high dividend yield stock, is on the verge of a breakout!
The share price of Oracle Financial Services jumped higher by 2.97 per cent on Wednesday to close at Rs 4722 per share on NSE. The stock managed to close at its all time highs, if we consider the closing prices. The 52-week high for the stock is Rs 4789 per share, made on 13 August.
The shares of Oracle Financial Services have gained by more than 14 per cent in one month, while in 2021 alone the stock is up by 45 per cent. The stock is showing buying interest in the recent two trading sessions as the volume has increased while two green candles are seen on the daily chart with long bodies. On weekly chart the RSI is above 70 for Oracle Financial Services while on daily chart the RSI is close to 70.
The stock has closed above crucial resistance levels on Wednesday and is showing signs of breaking out of its 52-week high levels. The stock bounced from its 30D EMA on Monday this week i.e 23 August and the stock has managed to close above the short moving average i.e 9D EMA on Wednesday. This indicates bullishness in the near term. Oracle Financial Services shares are trading at a PE multiple of 22.59 while the dividend yield at current price stand at 4.24 per cent. The TTM PE of Oracle Financial Services is below the industry average PE, which implies the stock is not overvalued and could be undervalued. The FPIs have also increased their stake in Oracle Financial Services in the recent quarter. The FPI holding has increased by 9.51 per cent (QoQ) for the June quarter.
Momentum traders and investors should keep Oracle Financial Services on their watchlist.