WIPRO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.9

📊 Chart & Trend Analysis:

WIPRO is trading at ₹264, above both its 50 DMA (₹251) and 200 DMA (₹255), indicating a bullish bias. RSI at 68.8 suggests the stock is approaching overbought territory, warranting caution. MACD at 4.37 shows positive momentum, confirming short-term strength. Bollinger Bands place the price near the upper band, signaling strong momentum but also potential short-term exhaustion. Current volume (94,02,637) is significantly above the 1-week average (54,66,444), reflecting strong market participation and buying interest.

🔎 Momentum Signals:

- Short-term momentum: Bullish but nearing overbought.

- Support levels: ₹255 (DMA 200), ₹251 (DMA 50), ₹240.

- Resistance levels: ₹270, ₹285, ₹300.

- Optimal entry zone: ₹255–265.

- Optimal exit zone: ₹280–300.

- Current phase: Trending upward with strong momentum, but risk of consolidation near resistance.

Positive

• Strong ROCE (23.0%) and ROE (17.8%) highlight efficient capital utilization.
• Dividend yield of 2.28% provides steady investor returns.
• Stock trading above both 50 DMA and 200 DMA confirms bullish structure.
• EPS of ₹11.5 reflects consistent profitability.
• FII holding increased by 0.29%, showing foreign investor confidence.

Limitation

• RSI at 68.8 indicates overbought conditions, raising risk of short-term correction.
• Quarterly PAT declined from ₹3,696 Cr. to ₹2,614 Cr. (-4.75%).
• PEG ratio of -5.76 highlights weak growth prospects relative to valuation.
• 52-week index at 39.5% shows moderate underperformance compared to sector leaders.

Company Negative News

• Quarterly profit decline raises concerns about earnings momentum.
• DII holding increased only marginally (+0.08%), showing limited domestic institutional support.

Company Positive News

• FII support increased (+0.29%), balancing sentiment.
• Dividend yield and strong ROCE/ROE provide investor comfort.

Industry

• Industry P/E at 26.4 is slightly higher than WIPRO’s (23.0), suggesting fair valuation relative to peers.
• IT services sector outlook remains stable with demand for digital transformation and cloud services.

Conclusion

⚡ WIPRO is trending upward with strong momentum, supported by moving averages and volume. Entry near ₹255–265 offers favorable risk-reward, while exits around ₹280–300 are optimal. Strong fundamentals and dividend yield balance out earnings decline and overbought RSI. Short-term trend is bullish, with potential consolidation near resistance levels.