WIPRO LTD-BUY

Target -519
CMP- 435
Stop less-405
Upside-19%
Risk-6.9%

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.