Over the past three years, Wipro Ltd. shares have produced negative returns. The IT stock, which went ex-bonus on December 3, had a 7% decline in three years but showed positive returns throughout periods of one week to ten years. In the last 12 months, Wipro’s stock has increased 42% and gained 25.56%. The software giant’s shares are now trading close to the Rs 300.85 52-week high that was hit last week on December 5.
Wipro shares are trading above the five-, ten-, twenty-, fifty-, one-hundred-, one-hundred-, one-hundred-, and two-hundred-day moving averages, suggesting that the momentum is bullish in the short and long term. At Rs 299.60, Wipro’s stock was up 0.79% during the current session. Wipro’s market value was Rs 3.13 lakh billion. A total of 1.80 lakh shares were exchanged, generating Rs 5.35 crore in revenue on the BSE. Technically speaking, Wipro’s relative strength index (RSI) is 63.2, indicating that the stock is neither overbought nor oversold on the charts.
Choice Broking’s Derivative Analyst Hardik Matalia states, “Wipro is currently trading around Rs 298 after a recent bonus issue.” The stock has exhibited a strong bullish trend through the formation of higher highs and higher lows, suggesting favourable momentum in the near future. Additionally, it has broken out of its current consolidation zone, indicating a resurgence of purchasing activity and paving the way for future gains. For Wipro to continue its upward trajectory and aim for greater heights, it will be crucial to maintain above the Rs 300 barrier. At 64, the Relative Strength Index (RSI) is presently on a sideways to rising trend. This suggests that there is still an opportunity for additional gains before the market becomes overbought.
Further supporting a strong positive bias across time frames is the fact that the stock is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels. As long as Wipro stays above the critical support level of Rs 275, traders are encouraged to use a buy-on-dips approach based on these positive technical indications. This strategy allows traders to profit from future corrections while maintaining efficient risk management. According to SEBI-registered independent analyst A R Ramachandran, the price of Wipro’s stock is optimistic on the daily charts, with firm support at Rs 293.75. In the short run, a daily close above the resistance of Rs 299 would result in a goal of Rs 319.
Since August, Wipro has been trading in an upward-sloping channel with prominent support and resistance levels, according to Ameya Ranadive, Chartered Market Technician, CFTe, Senior Technical Analyst, StoxBox. Thanks to its strong technical structure, it has distinguished itself as one of the best-performing IT companies in recent years. The stock is showing consistent positive momentum, trading comfortably above its major short-, medium-, and long-term exponential moving averages (20, 50, 100, and 200 EMA).
The Relative Strength Index (RSI), which maintains its level above 60, indicates strong purchasing interest. The Directional Movement Index (DMI) also supports the trend, staying at 18. Given the current trend, with possible upside goals of Rs 325 and Rs 335, Wipro is a tempting purchase above Rs 300. But if the price drops below Rs 290, it might invalidate the positive view, so proceed with care.
Wipro’s overall net profit for the September 2024 quarter increased by 21.26% year-over-year (YoY). Compared to Rs 2,646.3 crore in the same time last year, profit in Q2 was Rs 3,208.8 crore. During the same time the previous fiscal year, the company’s operating revenue decreased by 0.95 per cent to Rs 22,301.6 crore from Rs 22,515.9 crore.
