Down 55% from record high, Wipro shares deliver negative returns for up to five years; looking to exit?

Wipro share price: Shares of IT major Wipro Ltd have fallen 55% from their record high reached in 2021 end. The IT stock hit a record high of Rs 369.93 on October 14, 2021. The stock is stuck in the bear grip with the IT player trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. Wipro stock has slipped 38% this year and slipped 51% in five years.

Wipro shares fell to a 52-week low of Rs 163.35 in the current session. Market cap of Wipro declined to Rs 1.63 lakh crore. The IT sector stock could generate positive returns of 82% in a long span of ten years.

Its RSI lies at 35.1, indicating the stock is trading near the oversold zone. Total 3.82 lakh shares of the firm changed hands amounting to a turnover of Rs 6.36 crore.

Kunal Kamble, Sr. Technical Research Analyst at Bonanza Portfolio said, "Wipro remains in a clear downtrend, trading below all major EMAs with persistent lower highs and lower lows. RSI is weak near 32, indicating negative momentum. Avoid fresh buying; existing positions can be exited below Rs 164, with further downside possible toward Rs 155–150."

Jigar Patel from Anand Rathi said, "Support is placed at Rs 160 while resistance stands at Rs 171. A decisive breakout above Rs 171 could open the door for further upside towards Rs 175. In the short term, the stock is expected to trade within the Rs 160- Rs 175 range."

Last week, the US Federal Reserve raised its lending rate by 25 basis points (bps) to 4%. The central bank signaled one more rate hike could be on anvil before year-end

Indian IT stocks including Wipro are under pressure as concerns over a tighter US monetary policy added to a string of challenges facing the sector. Higher interest rates in the US can weigh on corporate spending, prompting companies to defer or scale back technology investments.

As borrowing costs remain elevated, clients may prioritise essential technology spending while delaying discretionary projects and digital transformation initiatives. Any slowdown in such spending could affect revenue growth for major Indian IT services companies, which depend heavily on overseas clients.

Indian IT stocks have already faced a difficult year amid concerns over US trade tariffs, the disruption posed by artificial intelligence (AI) and geopolitical tensions, including the ongoing US-Iran conflict. With the US accounting for more than half of the revenue of several major Indian IT companies, developments in the world's largest technology market have a significant bearing on the sector's earnings outlook and investor sentiment.