Synopsis: Wipro shares reached a fresh 52-week high of Rs. 313.10 on Thursday, maintaining a steady performance above Rs. 300 for the fourth consecutive session. The firm's market cap surged to Rs. 3.26 lakh crore, with a turnover of Rs. 7.47 crore from 2.40 lakh shares traded on the BSE. Mixed sentiments with Investec maintaining a "Sell" rating (target Rs. 290) and HSBC upgrading the stock to "Hold" (target Rs. 263).
Shares of Wipro Ltd soared to a fresh 52-week high during early trade on Thursday, reaching Rs. 313.10, up marginally from its previous close of Rs. 309 on the BSE.
This marks the fourth consecutive session where the stock has remained above the Rs. 300 level, signalling robust investor interest.
The company's market capitalization rose to Rs. 3.26 lakh crore, with 2.40 lakh shares traded, amounting to a turnover of Rs. 7.47 crore.
Analyst Opinions:
Brokerage Firm Insights:
With a cash reserve of $6.1 billion, Wipro’s capital allocation policy is expected to align more closely with industry peers, potentially unlocking value for stakeholders.
HSBC, on the other hand, upgraded its rating to "Hold" with a price target of Rs. 263.
This move reflects tempered optimism regarding the stock's performance amidst the broader IT sector's volatility.
Expert Commentary:
He recommended long-term investors accumulate the stock during corrections, setting a medium-term target of Rs. 332.
Hardik Matalia of Choice Broking highlighted the importance of the Rs. 300 support level. He advised traders to adopt a "buy-on-dips" strategy while maintaining vigilance for a critical support level of Rs. 275.
Ameya Ranadive, Senior Technical Analyst at StoxBox, identified potential upside targets of Rs. 325 and Rs. 335, provided the stock remains above Rs. 300.
However, he warned that a fall below Rs. 290 could negate the bullish outlook.
Technical Performance:
Wipro's relative strength index (RSI) stands at 71.3, indicating the stock is overbought.
However, the bullish momentum remains strong, with the stock trading above its 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages.
On a year-to-date basis, the stock has gained 31.03% and surged 48.14% over the past year.
In conclusion, Wipro's consistent rise above Rs. 300 and a 31% year-to-date gain underline its strong momentum in the IT sector.
While brokerage opinions remain divided, the stock's technical indicators favor a bullish outlook in both the short and long term.
Investors should consider expert recommendations and market conditions carefully, adopting strategies that align with their risk appetite.
However, caution is warranted given potential corrections and the overbought nature of the stock.
Disclaimer: The above analysis is for informational purposes only and does not constitute investment advice. Investors are strongly encouraged to consult a qualified financial advisor before making any investment decisions.
