Wipro shares stuck in bear grip; analysts assess recovery outlook

Wipro share price: Shares of IT major Wipro Ltd are stuck in bear grip, posting negative returns since five years. Wipro shares trade lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. The IT stock has slipped 39% this year and declined 51% in five years.

Why Wipro stock is under pressure

Indian IT stocks, including Wipro, remain under pressure as concerns over a tighter US monetary policy add to the sector’s existing challenges. Expectations of higher-for-longer interest rates in the US could weigh on corporate technology spending, particularly as companies become more cautious about discretionary investments amid elevated borrowing costs.

Any signs of weaker enterprise spending could further pressure growth expectations and weigh on investor sentiment toward the sector.

Stock movement 

Meanwhile, the IT stock trades nears the 52-week low hit this week. On September 22, the stock fell to a low of Rs 163.20. The IT sector stock could generate positive returns of 82% only in a long span of ten years.

Wipro shares ended 0.73% lower at Rs 163.20 on Thursday. Market cap of Wipro declined to Rs 1.62 lakh crore. Total 7.03 lakh shares of the firm changed hands amounting to a turnover of Rs 11.58 crore.

Its RSI lies at 32.6, indicating the stock is trading near the oversold zone.

Wipro stock outlook

Shitij Gandhi, AVP - Equity Technical Research, SMC Global Securities said, "Wipro Limited exhibits a decisive bearish structural breakdown on its hourly chart, completing a classic Descending Triangle pattern as prices breached a major horizontal support base near Rs 170.00. The stock consistently formed lower highs below a descending trend line and forced a sharp decline. On higher side with key moving averages are now sloping downwards the price action confirms strong bear momentum for now. On the technical side, primary resistance sits at Rs 170 (the broken support base), followed by the upper trend line barrier at 174.00–176 zone with  pattern peak at Rs 190–192 zone. On downside immediate support rests at 160.00–162.00 with further downside targets around Rs 150–145 levels. From a technical standpoint, the outlook remains heavily short-biased, with any tactical pullbacks toward Rs 170.00 expected to meet fresh selling pressure aiming for lower targets unless the price decisively reclaims the Rs 176.00 mark."

Sachin Gupta, VP – Technical Research at Choice Broking said, "Although the broader trend remains bearish, with the stock still below its long-term downtrend and key moving averages, the current levels offer a potential positional buying opportunity from a risk-reward perspective. 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. On the upside, the stock could move towards Rs 200– Rs 203. However, a decisive weekly close below Rs 157.65 would negate the bullish setup and could lead to further downside. Hence, Rs 157.65 remains the key level to watch for positional longs."