Wipro shares up 20% in a month; can stock revisit one-year high levels?

Shares of Wipro Ltd jumped 4 per cent in Monday's trade to hit a high of Rs 535.50. The stock was last seen trading 3.07 per cent higher at Rs 530.70. At this price, it has gained 19.54 per cent in the past one month. Despite the said rise, the scrip was down 2.82 per cent from its 52-week high of Rs 546.10, hit earlier this year on February 2.

"For a longer-term basis, the relative valuation for IT stocks looks attractive. Investors can consider stocks such as Wipro for the long term," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

With that being said, next quarterly results and guidance will be extremely crucial while going forward, Bathini added.

On technical setup, support on the counter could be seen in the Rs 500-490 range. And, a decisive close above Rs 545 is required for further upside. 

"Wipro has seen good traction after breaching the Rs 500 zone. The stock seems poised to test the recent swing high of Rs 545 on an intermediate basis. It would be crucial to watch the counter for a breakout above the mentioned zone, as it may trigger strong traction in a comparable period. On the lower end, Rs 500-490 is likely to cushion any short-term blip," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"The stock looked strong on daily charts. It can hit an upside target of Rs 555 in the near term. Keep stop loss placed at Rs 520," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 75.99. 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 29.50 against a price-to-book (P/B) value of 4.66. Earnings per share (EPS) stood at 17.45 with a return on equity of 15.78.

As of March 2024, promoters held a 72.89 per cent stake in the IT firm.