Wipro Ltd, one of India’s leading IT service companies, saw its share price climb 1.72% in today’s trading session, reaching ₹551.2 by 11:17 AM. The stock has been on an upward trajectory despite broader market indices like Sensex and Nifty showing mild declines.
As of the same time, the Sensex was down by 0.08%, trading at ₹85,764.7, while Nifty followed a similar downward trend, dipping by 0.15%.
Wipro’s performance stands out in a mixed market, especially with several other tech peers seeing varied fortunes.
While stocks like Zomato and Firstsource Solutions dipped during today’s session, others like Info Edge India and Eclerx Services joined Wipro in registering gains. So, what’s behind Wipro’s strong performance, and how is it positioned for the future?
Wipro Highlights
By mid-morning, Wipro’s stock had reached an intraday high of ₹558.55, while the day’s low was ₹546. The stock’s momentum today, combined with its technical indicators, points toward a sustained uptrend.
On the technical front, Wipro’s stock is currently trading above its short-term and long-term SMAs. The stock is well-positioned above the 5, 10, 20, 50, 100, and 300-day SMAs, signaling a strong bullish sentiment. Here’s how the SMAs look for Wipro as of today:
| Days | Simple Moving Average (SMA) |
|---|---|
| 5 | ₹537.32 |
| 10 | ₹538.48 |
| 20 | ₹532.42 |
| 50 | ₹522.99 |
| 100 | ₹502.05 |
| 300 | ₹490.71 |
Wipro’s current trading price of ₹551.2 places it comfortably above these key averages, reflecting a steady upward momentum. This technical strength is backed by increasing trading volume, adding further credibility to the bullish sentiment.
Volume traded on NSE and BSE for Wipro by 11 AM today was 617.65% higher than the previous trading session. Increased volume alongside positive price movement generally indicates a sustainable uptrend in the stock.
Pivot Level Analysis
For traders focusing on short-term opportunities, pivot level analysis provides valuable insight into Wipro’s immediate support and resistance zones. As per Mint’s technical analysis, Wipro’s key resistance levels stand at ₹544.63, ₹547.57, and ₹552.03.
Given that Wipro is already trading at ₹551.2, the stock is nearing a crucial resistance point at ₹552.03. A breakout above this level could indicate further gains in the coming days.
On the downside, support levels for Wipro are at ₹537.23, ₹532.77, and ₹529.83. These levels serve as important safety nets for investors should the stock face any short-term correction. However, with the current bullish momentum, the stock appears to be well-positioned to maintain its upward trajectory.
Broader Market Context
The rise in Wipro’s stock price today comes against a backdrop of mixed market performance. The Sensex and Nifty, two of India’s benchmark indices, have been hovering around record highs but dipped slightly in today’s trading session. Sensex was down 0.08% while Nifty slipped by 0.15%. However, the Bank Nifty index has been surging throughout the week, inching closer to new highs.
Market participants were asked to predict where the Bank Nifty rally might be headed, with options ranging from 53,000 to 54,500. While Bank Nifty continues to rally, Wipro’s rise in a subdued market shows resilience, which could be attributed to its technical strength and positive outlook among investors.
Fundamental Analysis of Wipro
Wipro’s rise is not only supported by technical factors but also by its sound fundamentals. The company boasts a ROE of 14.43%, which reflects its ability to generate profits from shareholders’ investments.
The stock’s P/E ratio is at 25.40, while its P/B ratio is 3.63. These valuations indicate that Wipro is fairly valued compared to its peers in the IT sector, making it an attractive option for investors looking for long-term growth.
According to analysts, the median 1-year forecasted upside for Wipro shares stands at 9.79%, with a target price of ₹497.26. Although the stock is currently trading above this target, the company’s ongoing performance and the positive market sentiment could push its valuations higher in the future.
Institutional Participation
In terms of institutional holdings, Wipro has strong backing from promoters, mutual funds, and FIIs. As of the June quarter, Wipro has a promoter holding of 72.82%, mutual fund holding of 4.64%, and FII holding of 7.12%. Interestingly, both MF and FII holdings have seen slight increases compared to the March quarter, reflecting growing confidence in the company’s performance.
Mutual fund holdings have risen from 4.60% in March to 4.64% in June, while FII holdings increased from 6.96% to 7.12% over the same period. This incremental rise in institutional participation is a strong indicator of Wipro’s improving outlook, especially as global demand for IT services continues to rise.
Outlook
Wipro’s 1.72% gain today, coupled with its strong technical and fundamental indicators, suggests that the stock is in a robust position to continue its upward journey. The company’s ability to stay above key moving averages and maintain solid institutional backing is a sign of confidence among investors.
The broader market is still showing signs of volatility, as evidenced by the slight dip in Sensex and Nifty. Traders should keep an eye on key resistance and support levels for Wipro, particularly around ₹552.03, which could determine the stock’s near-term trajectory.
As Wipro stands strong amidst mixed market sentiment, the stock remains a favored pick for both short-term traders and long-term investors looking to capitalize on its sustained growth potential.
