WIPRO - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 4.0

📊 WIPRO shows solid fundamentals with ROCE (23.0%) and ROE (17.8%), supported by low debt (0.12) and a healthy dividend yield (2.28%). Technically, the stock is trading above both 50 DMA (251 ₹) and 200 DMA (255 ₹), indicating bullish momentum. RSI at 68.8 suggests the stock is nearing overbought territory, so caution is advised. Valuation is fair with a P/E of 23.0 compared to industry average of 26.4, though quarterly PAT has declined (-4.75%).

✅ Optimal Entry Price: 255–260 ₹ (near DMA support)

🚪 Exit Strategy (if already holding): Consider exit near 310–320 ₹ (resistance zone), or if RSI crosses 70–72.

Positive

• 📈 Strong ROCE (23.0%) and ROE (17.8%) highlight efficient capital use.
• 💹 Dividend yield (2.28%) provides shareholder return.
• 📊 P/E (23.0) is lower than industry average (26.4), suggesting fair valuation.
• 📉 Price above DMA 50 & DMA 200 confirms bullish technical setup.

Limitation

• ⚠️ Quarterly PAT decline (-4.75%) raises earnings concerns.
• 📉 RSI at 68.8 indicates near overbought conditions.
• 📊 Negative PEG (-5.76) signals weak growth prospects.
• 📉 52w Index at 39.5% shows moderate underperformance compared to broader market.

Company Negative News

• 📉 Sequential profit decline from 3,696 Cr. to 2,614 Cr. highlights earnings volatility.

Company Positive News

• 📈 FII holding increased (+0.29%), showing foreign investor confidence.
• 📈 DII holding increased (+0.08%), reflecting domestic institutional support.

Industry

• 🏭 Industry P/E at 26.4 is slightly higher, suggesting peers trade at richer valuations.
• 📊 IT services sector outlook remains positive, driven by digital transformation and global demand.

Conclusion

⚖️ WIPRO is a good swing trade candidate with strong fundamentals and bullish technicals. Entry near 255–260 ₹ offers margin of safety, while exit near 310–320 ₹ is prudent. Traders should maintain strict stop-loss discipline due to near overbought RSI and earnings volatility.

Would you like me to extend this into a peer benchmarking overlay so you can compare WIPRO against other IT peers like Infosys, TCS, and HCL Tech for relative strength and valuation positioning?