Wipro’s recent Q3 results for FY25 have set the stage for a potential gap-up opening in its share price when trading resumes on Monday. The stellar performance in earnings, coupled with a 4.24% surge in Wipro’s ADR price on the New York Stock Exchange (NYSE) on Friday, has heightened market anticipation. However, experts urge caution, as technical charts and global cues suggest a mixed bag for the IT major’s near-term performance.
Wipro’s Q3 Results: A Strong Performance
Wipro’s Q3 FY25 results outperformed market expectations, showing robust growth despite a challenging global economic environment. Key highlights include:
- Net Profit Growth: Wipro reported a 24.5% year-on-year rise in consolidated net profit to ₹3,353.8 crore, compared to ₹2,694.2 crore in Q3 FY24.
- Revenue Increase: Consolidated revenue grew marginally to ₹22,319 crore, up from ₹22,205 crore in Q3 FY24.
- Operational Excellence: Margins improved due to cost optimization strategies, offsetting wage hike impacts.
According to Sagar Shetty, Research Analyst at StoxBox:
“Wipro exhibited robust financial performance, countering fears of weakness in the consulting arm. The company leveraged cost optimization and strong execution capabilities to sustain growth.”
What’s Driving the Gap-Up Opening?
Wipro ADR Surge
Following the announcement of Q3 results, Wipro’s ADR on NYSE jumped by 4.24%, signaling strong investor confidence. This has created optimism for a gap-up opening in the Indian market on Monday.
Technical Breakout Potential
Market experts have identified ₹309 as a critical resistance level. If Wipro’s share price breaks and sustains above this level, it could signal a fresh technical breakout with significant upside potential.
Expert Analysis: Risks and Opportunities
Resistance and Support Levels
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlighted key levels to watch:
“While a gap-up opening is likely, resistance at ₹309 will be critical. A failure to sustain above this level could trigger profit booking, pushing prices towards the ₹290 range.”
Impact of Global Policies
Experts also warn that large-cap IT stocks like Wipro could come under pressure if global policies, such as Donald Trump’s protectionist tariff measures, intensify.
Strategic Insights for Investors
Long-Term Perspective
Despite near-term volatility, Wipro’s strategic positioning in sectors like BFSI and consulting, along with its discretionary revenue contributions, makes it a promising long-term investment.
Short-Term Strategy
Traders are advised to adopt a “sell-on-rise” approach, particularly if the stock fails to breach the ₹309 resistance level sustainably.
FAQs
Why is Wipro’s share price expected to open higher on Monday?
The strong Q3 results and a 4.24% surge in Wipro’s ADR price on NYSE are driving expectations of a gap-up opening.
What is the significance of the ₹309 resistance level?
Breaking and sustaining above ₹309 could signal a technical breakout, opening up further upside potential for the stock.
How did Wipro perform in Q3 FY25?
Wipro reported a 24.5% increase in net profit and marginal revenue growth, showcasing operational efficiency and cost optimization.
Should investors book profits on Wipro shares?
Experts suggest profit booking if the stock fails to sustain above ₹309. Traders should monitor technical levels closely.
What impact will global policies have on Wipro’s performance?
Policies like Trump’s protectionist tariffs could pressure IT stocks, but Wipro’s diversified portfolio may help offset some risks.
Is Wipro a good long-term investment?
Wipro’s strong positioning in BFSI, consulting, and discretionary spending sectors makes it a solid long-term prospect despite near-term challenges.
What are the key support levels for Wipro shares?
Weekly support is identified around ₹230, which could be tested if the stock faces significant downward pressure.
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