Shares of Wipro are in a downtrend in the short term. The IT stock ended lower below Rs 250 for the third straight session today. Wipro shares ended 0.47% lower at Rs 243.80 in the current session.
Market cap of the IT firm stood at Rs 2.55 lakh crore.
The trend is weak in terms of simple moving averages.
Wipro shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The trend of negative returns in the short-to-medium term is likely to continue in the near term, believe analysts.
Osho Krishan, Sr. Research Analyst – Equity and Derivatives at Angel Broking said, “Wipro is presently undergoing a sluggish period, remaining close to a cluster of EMAs on the daily chart and exhibiting a pattern of lower highs. The behavior suggests a sideways to negative outlook in the near term. Support is established in the vicinity of the Rs 240 level; consequently, a breakdown below this threshold may adversely affect the short-term outlook.”
“Conversely, a sustained movement above the Rs 260-265 range could only potentially stimulate renewed buying interest in the stock,” added Krishan.
Mandar Bhojane, Senior Technical & Derivate Analyst, Choice Broking said, “Wipro is currently trading in a sideways to bearish trend. On the daily chart, the price is taking support from a rising trendline, indicating price stability at lower levels. However, the stock is repeatedly getting rejected from the Rs 253-257 supply zone, which now acts as an immediate resistance. Only a decisive breakout above this zone could trigger fresh buying momentum, with potential upside targets of Rs 265 and Rs 270. On the flip side, immediate support is placed at Rs 245; a breakdown below this level may open the way for further downside towards Rs 240 and Rs 236.”
Shitij Gandhi, Sr. Research Analyst (Technicals), SMC Global Securities said, “On the charts, immediate resistance is placed near Rs 255-260 zone, while strong support is expected around Rs 239-240 zone. Unless Wipro decisively breaks above Rs 260 with volume support, the stock is likely to remain weak and range-bound. A slip below Rs 240 could extend the downtrend further, while long-term sentiment stays negative amid muted trading volumes.”