Shares of Wipro Ltd soared to a fresh 52-week high on Thursday, reflecting strong momentum in both the short and long term. The stock touched ₹313.10 on the Bombay Stock Exchange (BSE), continuing its streak above the ₹300 mark for the fourth consecutive session. With its market capitalization crossing ₹3.26 lakh crore, Wipro’s robust performance has caught the attention of analysts, traders, and investors alike.
Key Highlights
- Stock Performance:
- Wipro’s share price rose to ₹313.10, against a previous close of ₹309 on the BSE.
- The stock has gained 31.03% year-to-date and an impressive 48.14% over the past year.
- It is trading above key moving averages, including the 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day averages.
- Volume and Turnover:
- A total of 2.40 lakh shares were traded on BSE, with a turnover of ₹7.47 crore.
- Technical Indicators:
- The Relative Strength Index (RSI) is at 71.3, indicating an overbought condition.
- Analysts highlight critical support at ₹275 and resistance at ₹320-360 in the medium term.
Analysts’ Insights and Recommendations
- Prashanth Tapse, Mehta Equities:
- Outlook: Bullish in the medium term with strong deal pipelines.
- Target: ₹320-360 range.
- Recommendation: Accumulate on dips for long-term investors.
- Hardik Matalia, Choice Broking:
- Strategy: A buy-on-dips approach is advised as long as the stock stays above ₹275.
- Key Levels: Sustaining above ₹300 is essential for an upward trajectory.
- Ameya Ranadive, StoxBox:
- Position: A compelling buy above ₹300.
- Targets: ₹325 and ₹335.
- Caution: A slip below ₹290 could negate the bullish outlook.
- Brokerage Firms:
- Investec: Maintains a sell call with a target of ₹290, citing alignment with peers’ capital allocation strategies.
- HSBC: Upgraded to hold, with a price target of ₹263.
Technical Analysis and Key Levels
| Indicator | Details |
|---|---|
| Moving Averages | Trading above all major averages |
| RSI | 71.3 (Overbought zone) |
| Support Level | ₹275 |
| Resistance Range | ₹320-360 (Medium-term potential) |
- Bullish Momentum: Wipro’s consistent performance across moving averages signals strong bullish momentum.
- Overbought Zone: The RSI of 71.3 indicates the stock is overbought, warranting cautious trading strategies.
Strategies for Traders and Investors
- Short-Term Traders:
- Watch for a close above ₹307 to confirm further upward movement.
- Adopt a buy-on-dips strategy near ₹275 support to manage risk effectively.
- Long-Term Investors:
- Accumulate during corrections, focusing on Wipro’s strong fundamentals and deal pipeline.
Conclusion
Wipro’s stellar performance and bullish momentum have positioned it as a strong contender in the IT sector. While analysts suggest caution due to overbought conditions, the stock’s long-term outlook remains optimistic. Investors are advised to monitor key support and resistance levels closely, aligning their strategies with market trends.
Disclaimer
This article is for informational purposes only. Please consult a financial advisor before making any investment decisions.