Shares of Datamatics Global Services gained over 13 percent in trade Tuesday, after the smallcap technology company clarified on rumors about a termination or cancellation of a big partnership in the US. The stock opened at Rs 549.70 and went on to hit an intra-day high of Rs 617.05, rising 13.14 percent to Rs 610 apiece.

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"The company would like to clarify on the rumors in the market regarding the termination/cancellation of a big partnership in the US. These rumors are false and baseless and merely public speculations," it said in a statement.

Refuting baseless rumours, Rahul L Kanodia of Datamatics told ET, "I do not know what this rumour is about, it seems to be totally unfounded, I mean there is no dialogue with anybody, positive or negative, I mean, this is just totally a baseless unfounded rumour. There is nothing to do with any partnership or any customer or anything of that kind. For us it is business as usual. So this news seems to be just totally out of thin air, which has no bearing whatsoever."

Further, the company said it has not withheld any material information or announcement or impending announcement that, as per Datamatics, would have a bearing on the price or volume behavior in the scrip.

"We further clarify that there is no information pending to be disclosed to the stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," the statement read.

The stock of Datamatics Global Services has given multibagger returns to investors in the last one year and this year so far, gaining 103.56 percent and 117.14 percent, respectively.

In terms of technicals, the 14-day relative strength index (RSI) of Datamatics Global Services stands at 44.9, signaling the stock is neither oversold nor overbought. The stock has a one-year beta of 1, indicating average volatility during the period. Datamatics Global Services shares are trading higher than the 20 day, 50 day, 100 day and 200 day moving averages, but lower than 5 day moving average.