Wipro Stocks Registered A Breakout; Surged 4%

At the beginning of the week, the Nifty displayed strength as it surged towards a record high, surpassing the previous week’s trading zone. In this impressive rally, the IT sector also joined the upward momentum, with one stock capturing attention as it broke out from a bullish trend reversal pattern lasting over 150 days, signalling a potential reversal of the downtrend witnessed in the past year and a half. 

Shining in the spotlight is Wipro Ltd., a global information technology, consulting, and outsourcing company. As the fourth-largest player in the Indian IT services industry, it focuses on the development and integration of solutions. With its operations spanning Information Technology Services, India State Run Enterprise Services, and Information Technology Products, Wipro offers a wide range of digital and technology services to enterprises worldwide. Established on December 29, 1945, the company’s headquarters are situated in Bengaluru, India.

Following its peak at Rs 739.85 in mid-October 2021, Wipro’s stock price began retracing its previous multibagger rally. Interestingly, the lower end of this retracement aligns with a support level that retraces over 61.8% from the impressive rally that commenced on March 19, 2020, around the Rs 159.40 level, as depicted on the daily chart. In recent trading days, the stock has witnessed significant buying interest, resulting in an upward movement after a bullish crossover of the 5-26 and 13-26 Daily Moving Average (DMA). 

By drawing a trendline connecting the highs of February 16, 2023 (at the Rs 413.25 level), and June 02, 2023 (at the Rs 409.80 level), a breakout trendline has emerged, indicating a prolonged trend reversal pattern of over 150 days. Today, the stock registered the breakout by surging over 4% with huge volumes of more than 22 million shares. Today’s close at Rs 415.25 level above this trendline level (Rs 408.5) has confirmed the breakout. The stock has the potential to reach Rs 490, presenting a gain of approximately 20% from the breakout level (Rs 408.5). 

Swing traders and short-term investors are advised to add this stock to their watchlist.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.