Wipro shares halt 3-day losing run, climb 2% today; here's what analysts say

Shares of Wipro climbed in Monday's trade, halting their losing run of three straight sessions. The stock rose 2.39 per cent to hit a day high of Rs 391.30 over its previous close of Rs 382.15. Information technology (IT) stocks are in focus today as the earnings season kicks off. The Nifty IT sub-index jumped 2.67 today.

Technical charts hinted that support on Wipro's stock could be seen at Rs 370, followed by Rs 380 and Rs 390 levels.

A total of 2.13 lakh shares changed hands today on BSE, which was half of their two-week average quantity. The turnover on the counter stood at Rs 8.36 crore. At this price, the company commanded a market capitalisation (m-cap) of Rs 2,14,232.79 crore.

There were 4,90,539 sell orders today against buy orders of 2,15,902 shares. On NSE, 17.45 crore shares were traded for a value of Rs 67.92 crore.

Technical analysts said that the counter is 'hesitant' to climb higher until it crosses Rs 420. One analyst suggested if the stock manages to move beyond the said level, then it can climb up to Rs 445. Resistance was seen at Rs 396, another analyst said.

Sneha Seth, Derivatives Research Analyst at Angel One, said, "We are witnessing strong base formation around Rs 370-380 zone, which also coincides with a 61.8 per cent retracement on the monthly chart. Hence, those traders who have been stuck in this counter are advised to hold with a strict stop loss of Rs 370. On the upside, any move beyond Rs 420-425 shall bring back momentum which may bring it toward Rs 440-445 odd zone.

Amol Athawale, Deputy Vice-President - Technical Research at Kotak Securities Ltd, said, "After short-term correction, the stock took support near Rs 375. For the positional traders, Rs 388 or 10-day SMA would be the key level to watch if the stock manages to trade above the same then we can expect uptrend continuation wave up to Rs 405-410."

Ameya Ranadive, Equity Research Analyst at Choice Broking, said the support remains at Rs 375-380 zone.

"The stock is hesitant to move higher until it crosses the Rs 420 mark. However, it may fluctuate between 4 to 5 percent in the short to medium term, which is the preferable range bound. Bears are still holding the IT industry captive. So, investors with a long-time horizon could accumulate at this level," Ranadive stated.

A R Ramachandran from Tips2trades said, "Wipro has strong resistance at Rs 396 on the daily charts. A close above this level could lead to higher targets of Rs 404-411 in the near term."

Strong support on the counter will be at Rs 390, Ramachandran added.

The stock has an average target price of Rs 459.15, showed Trendlyne data, which suggests a potential 17.47 per cent upside on the counter.

Wipro's 14-day relative strength index (RSI) came at 49.07. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 16.85.

Meanwhile, Indian equity benchmarks rebounded sharply, led by gains in index heavyweight Tata Consultancy Services (TCS), ahead of its third-quarter (Q3) results.

Wipro is scheduled to announce its Q3 earnings on January 13.

Further, Wipro in an exchange filing said it has allotted 31,896 equity shares under 'ADS Restricted Stock Unit Plan 2004' and 1,01,852 shares under the 'Restricted Stock Unit Plan 2007' on January 6 under ESOPs.

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