Shares of Wipro climbed on Monday, halting their losing run of six straight sessions. The stock rose 0.48 per cent to settle at Rs 395.95 over its previous close of Rs 394.05. The scrip hit an intraday high of Rs 397.45 on BSE. A total of 3.17 lakh shares changed hands on the counter, amounting to a turnover of Rs 12.48 crore. At this price, the market capitalisation (m-cap) of the company stood at Rs 2,17,232.78 crore.
At today’s high level of Rs 397.45, the stock was down 45.30 per cent from its 52-week high of Rs 726.70, hit on January 3, 2022. That said, the scrip is quoting 6.73 per cent above its one-year low of Rs 372.40 hit in October this year.
Analysts largely believe the counter could be range-bound in the near term. One of them suggested that a fall below Rs 385 may initiate weakness till the Rs 370 level. Another analyst ruled out a ‘major’ collapse.
Also Read | Rs 3,000 or Rs 3,500, where are Eicher Motors shares headed? Analysts decode
AK Prabhakar, Head of Capital, IDBI Capital, said: “The stock has corrected around 45 per cent this year, in line with the overall weakness in IT stocks. Given the current pricing, it looks a good buy with no major correction seen at present.”
Osho Krishan, Senior Analyst- Technical & Derivative Research, Angel One, said, “Wipro is in a secular downtrend and is hovering below all its major exponential moving averages on the daily chart. In the recent period, the stock struggled at higher grounds and went back into a consolidation phase. On the technical front, the support lies around the swing low of Rs 372-376 odd zone, while on the higher end, the immediate resistance is placed around the Rs 412-416 zone, followed by the bearish gap of Rs 430.
Amol Athawale, Deputy Vice-President of Technical Research at Kotak Securities said, “After a pullback rally, the stock took the resistance near Rs 415 and corrected sharply. In the last week, it shed nearly 5 per cent. Currently, the stock is trading near 50-day SMA (Simple Moving Average) and on daily and weekly charts it is still holding a higher bottom formation. We are of the view that the short-term texture of the stock is non-directional. For the bulls, now Rs 401 or 20-day SMA would be the important level to watch. And if the stock manages to trade above the same, we can expect a quick uptrend rally towards Rs 410-417. On the flip side, trading below Rs 385 may increase further weakness up to Rs 375-370.”
Anand James, Chief Market Strategist at Geojit Financial Services, said, “Since July, Wipro’s downsides have eased and have been rounding off, raising hopes of formation of a bottoming pattern. Divergences are yet to be powerful though as there have not been enough reversal patterns or indicators to solidify upside hopes. Towards that end, we root for a sideways market with a negative bias, until below Rs 440, but with intermittent upside attempts. Major collapse is ruled out though, with good support seen at Rs 300.”
Ravi Singh, Vice-President and Head of Research at Share India, said, “Wipro may trade in a range-bound zone of Rs 380-400 levels in the near term. Long-term investors may hold their positions and an immediate target of Rs 420-450 levels is probable. Wipro is holding attractive valuations, however, weak EPS (Earnings per share) needs to be priced into the current valuations.”
Currently, Rs 406 is a strong resistance on the daily charts, said Pavitraa Shetty of Tips2trades. “Investors should wait for lower levels close to Rs 380-385 to buy for near-term targets of Rs 406-416 in the coming days,” she added.
Also Read | Rs 17 or Rs 24, where are YES Bank shares headed after taking out Rs 21 level?
Meanwhile, Indian equity benchmarks edged lower today, extending their fall for the second straight session, dragged by consumer durables and technology stocks.