WIPRO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.2

📉 WIPRO is currently in a reversal phase with bearish short-term momentum and weak volume trends. Entry zone: ₹230–₹241; exit zone: ₹255–₹270. Watch for RSI recovery and MACD crossover to confirm bottoming out.

📊 Technical Overview

• Price Action: Trading at ₹241, below both 50-DMA (₹246) and 200-DMA (₹256), indicating short-term and medium-term weakness.
• RSI (42.9): Neutral to weak, suggesting lack of momentum and potential for further downside.
• MACD (-1.37): Bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, indicating oversold conditions with possible support.
• Volume: Below 1-week average, showing weak participation and low conviction.
• Support Zones: ₹230 (S1), ₹225 (S2)
• Resistance Zones: ₹255 (R1), ₹270 (R2)

✅ Positive

• Strong ROCE (23.0%) and ROE (17.8%) reflect solid operational efficiency.
• EPS of ₹11.5 supports valuation and earnings visibility.
• Dividend yield of 2.49% offers attractive income potential.
• FII holdings increased (+0.29%), showing foreign investor confidence.

⚠️ Limitation

• Stock P/E (21.0) is below industry average (29.4), indicating cautious valuation.
• PEG ratio of -5.24 suggests poor earnings growth relative to valuation.
• Price trading below key moving averages confirms bearish bias.
• Volume trends are weak, limiting breakout potential.

📉 Company Negative News

• Quarterly PAT dropped from ₹3,696 Cr. to ₹2,614 Cr., a 4.75% decline.

📈 Company Positive News

• MACD and RSI nearing reversal zones, suggesting potential bottoming out.
• Stable fundamentals and strong ROCE/ROE support long-term investor confidence.

🏢 Industry

• IT services sector benefits from digital transformation, cloud adoption, and global outsourcing trends.
• Industry P/E of 29.4 reflects moderate valuation across peers.

🧭 Conclusion

• WIPRO is in a reversal phase with weak technical indicators and solid fundamentals.
• Entry zone: ₹230–₹241; exit zone: ₹255–₹270 for short-term bounce trades.
• Long-term investors may accumulate cautiously, supported by dividend yield and sector resilience.