Nucleus Software share price soared more than 10 per cent to Rs 450.55 apiece on BSE on Tuesday after the company and CMC-TS entered into an agreement with Vietnam Public Joint-stock Commercial Bank (PVcomBank) to digitally transform the bank’s lending origination operations. Analysts say that the stock may go up to the levels of 490 in this momentum. “The chart pattern is suggesting another leg of bull run and the levels of 490 is likely to be tested in near term. Investors may take long positions at current levels and hold for the target,” Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com
Nucleus Software stock price hit a 52-week low of Rs 355.10 apiece last month, since then it has risen 27 per cent. The company in its press release noted that through this partnership, PVcomBank is expecting to double its consumer loans within the next 4 to 5 years. With Nucleus Software’s lending platform FinnOne Neo, PVcomBank plans to launch innovative products and services in the market with great speed. PVcomBank was established in 2013 from a merger between PetroVietnam Finance Corp. and Western Bank & Morgan Stanley. The bank has a total assets of nearly $4.5 billion, charter capital of $0.4 billion.
Resistance at 460, Support at 398
AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com that on the positive news of an agreement with PVcomBank to transform the digital banking operations along with a pull back due to a positive divergence in IT stocks, Nucleus software has seen a sharp jump in stock price today. “460 remains a very strong resistance. A close above this level on Daily charts could lead to 525 in the coming weeks. Strong support can be seen at 398,” Ramachandran added.
“We are confident that our platform will enable PVcomBank to move rapidly towards digitisation of lending, cater to the Bank’s goals of retail product proliferation and help streamline its operations,” Parag Bhise, CEO of Nucleus Software, said in a press release. Nucleus Software powers the operations of more than 200 Financial Institutions in over 50 countries, supporting retail lending, corporate banking, cash management, mobile and internet banking, automotive finance and other business areas.
CMC-TS is among argest System Integration Companies in Vietnam. “Our partnership with Nucleus Software, a globally renowned Fintech, will provide tremendous business value to PVcomBank,” Ho Thanh Tung (CEO, CMC, said.
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