Over the past 12 sessions, Wipro Ltd.'s shares have reached new 52-week highs five times, pointing to a gradual but consistent increase in the stock of the IT industry. In two weeks, the stock had only increased by 5%. Wipro shares reached a new yearly high of Rs 319.95 during the current session after reaching a 52-week high of Rs 300.85 on December 5. With an RSI of 73, the IT stock has been overbought on the charts due to the current bull phase. This indicates that during the current session, there are more buyers than sellers of the stock.
Following a new 52-week high in early trade today, the IT stock was trading flat. The company's market value was Rs 3.25 lakh crore. A total of 3.20 lakh of the company's shares were exchanged, generating Rs 10.04 crore in revenue on the BSE.
"Over the last three months, Wipro has had an outstanding rally. At the current levels, the stock is approaching a crucial zone between Rs 320 and Rs 322, where a bearish Crab harmonic pattern is anticipated to finish. Another important technical obstacle that this zone coincides with is the R5 camarilla pivot resistance. Caution is recommended in light of this convergence of resistance levels. Since there is a higher chance of a reversal around the Rs 318–322 region, it would be wise to book profits there rather than starting new long positions," Patel said.
The stock gets a buy call from brokerage JM Financial, with a target price of Rs 620. Kotak Securities' VP of Technical Research, Amol Athawale, has a buy call on the IT stock with a target price of Rs 323. At Rs 307, the stop loss can be set. Wipro has been upgraded to hold by HSBC, which has set a price target of Rs 263. Morgan Stanley retains a 'underweight' rating and a target of Rs 250 per share.
The international brokerage stated that it views the most recent target firm, Applied Value Technologies, as being comparatively smaller following the company's acquisitions of Capco in 2021 and Rizing in 2022.
According to the brokerage, given the tiny scale, the aforementioned acquisition will give the Bengaluru-based IT major a greater capabilities boost and also add some prestigious clients to its portfolio. Furthermore, because of the acquired entity's tiny size, Morgan Stanley anticipates that the transaction will have little effect on the company's (Wipro) financials in FY25/FY26.
According to Ameya Ranadive, a senior technical analyst at StoxBox and a chartered market technician (CFTe), "Wipro is a strong investment above Rs 300, with possible upside targets of Rs 325 and Rs 335. But if the price drops below Rs 290, it could invalidate the positive view, so proceed with caution."
In its analysis on IT services, BNP Paribas set a price objective of Rs 232.5. It is pessimistic about the stock. When the suggestion was made, Wipro's stock was trading at Rs 299.3.
With a target of Rs 290, brokerage Investec has reaffirmed its sell call. The brokerage anticipates that the company would increase shareholder distributions and improve its capital allocation strategy.
Given that Wipro has a sizeable cash reserve of $6.1 billion, Investec thinks the company's new capital allocation strategy will probably be comparable to that of its peers in the industry.
The focus is still on the potential advantages of the updated policy framework, according to Investec, even though the stock may have little room to fall from its current levels.
The stock price of Wipro has increased 30.46% and 44.24% in the last year. The fact that Wipro shares are trading above the five, ten, twenty, fifty, one-hundred, and two-hundred-day moving averages suggests that the momentum is bullish in the short and long term.
