Shares of IT giant Wipro Ltd. continue to face significant selling pressure, trading near a 52-week low reached earlier this week. The stock closed 0.73% lower at Rs 163.20 on Thursday, pushing its market capitalization down to Rs 1.62 lakh crore. This prolonged "bear grip" has seen Wipro's stock deliver negative returns over the past five years, with a notable 39% decline this year alone and a 51% drop over the last half-decade.
Factors Driving Wipro's Decline
The broader Indian IT sector, including Wipro, is grappling with headwinds stemming from global economic concerns. A primary factor is the expectation of a tighter US monetary policy, leading to "higher-for-longer" interest rates. This environment tends to make corporations more cautious about discretionary technology spending, impacting IT service providers.
Analysts suggest that any indications of weaker enterprise spending could further dampen growth forecasts and negatively affect investor sentiment across the tech industry. Wipro's share price currently trades below all key moving averages, from 5-day to 200-day, underscoring the strong bearish momentum.
Technical Outlook: Expert Analysis
Market experts have offered differing perspectives on Wipro's immediate and long-term trajectory.
SMC Global Securities' View
Shitij Gandhi, AVP - Equity Technical Research at SMC Global Securities, observed a "decisive bearish structural breakdown" on Wipro's hourly chart. He highlighted the completion of a Descending Triangle pattern as prices breached a crucial horizontal support base near Rs 170.00. Gandhi noted, "The stock consistently formed lower highs below a descending trend line and forced a sharp decline." He identifies primary resistance at Rs 170, followed by Rs 174.00–176.00, with a pattern peak at Rs 190–192. On the downside, immediate support is seen at Rs 160.00–162.00, with further targets around Rs 150–145 levels. Gandhi concluded that the outlook remains "heavily short-biased," with any tactical pullbacks towards Rs 170.00 likely to encounter fresh selling pressure unless the price decisively reclaims the Rs 176.00 mark.
Choice Broking's Perspective
Sachin Gupta, VP – Technical Research at Choice Broking, acknowledged the prevailing bearish trend but suggested a potential positional buying opportunity from a risk-reward perspective at current levels. Gupta stated, "The key weekly support is placed at Rs 157.65, and as long as the stock sustains this level on a weekly closing basis, the setup remains favourable for a recovery." He believes that on the upside, the stock could move towards Rs 200– Rs 203. However, a decisive weekly close below Rs 157.65 would negate this bullish setup and could lead to further declines. Therefore, Rs 157.65 is highlighted as a critical level for investors considering positional long positions.