Target -519
CMP- 435
Stop less-405

Technical View

  • As the IT index sets foot into the stage 2, we contemplate a long opportunity in Wipro Ltd from a positional point of view.
  • Following a stupendous 364% rise to record the life highs of 739, it witnessed a 52% correction.
  • The price then consolidated for a over year’s time on dearth of volumes. This indicates limited supply and the formation of stage 1.
  • Stage 1 resembles accumulation of shares at relatively lower levels.
  • The pattern analysis on the weekly timeframe shows that price action staged a bullish breakout in the previous trading week following tighter compression ahead of the breakout.
  • On the daily timeframe, the zone of 431-416 now acts as crucial support zone.
  • The price action potentially reversed on 17th April 2023 and has been trending with the           formation of a volatility contraction pattern.
  • This pattern combined with the formation of recent constructive base indicates strength and potential signs of further accumulation at higher levels within the ongoing trend.  
  • As the price action broke out of the range of 431-416 on 4th September 2023 on a stronger volume node, it caused an imbalance amongst the sellers which further validates the strength in the mentioned support zone.
  •  The stock has seen improving EPS strength and buyer’s demand which is a positive sign.
  • We reiterate a buy on Wipro for the target of 519 and reckon to limit the risk to 405.


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