Shares of IT major Wipro Ltd have delivered flat returns this year, trading near Rs 400 mark for a majority of sessions. However, the IT stock has lost 30% during a year. Wipro stock, which closed at Rs 392.80 on December 30, 2022 was trading at Rs 389.05 in the afternoon session today. Infosys Ltd stock too has lost 0.18% during the period. On the other hand, TCS has gained 2.2% this year. During the same period, Sensex has lost 2.81% or 1711 points and Nifty has fallen 4.21% or 761 points.
The IT stock closed at Rs 555.85 on February 28 last year. It fell 29.95% in a year to Rs 389.05 today. The BSE IT index too has slipped 10.64% or 3527 points since February 27 last year.
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During the same period, Sensex has gained 5.85% or 3266 points and Nifty has added 4.11% or 685 points. Howver, the Nifty IT index has defied the rally in benchmark indices and corrected 10.79% in a year.
In the current session, Wipro stock was trading 4.24% away from its 52-week low of Rs 372.40 on October 17, 2022. Wipro stock touched an intraday low of Rs 385.4, down 2.01% on BSE. Wipro shares fell 0.93% to Rs 389.65 against the previous close of Rs 393.30.
Wipro shares have declined 38.31% in the last one year. Market cap of Wipro fell to Rs 2.17 lakh crore on BSE today. Total 3.65 lakh shares of the firm changed hands amounting to a turnover of Rs 14.43 crore on BSE. Market cap of the firm fell to Rs 2.14 lakh crore on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 40.6, signaling the stock is neither oversold nor overbought. Wipro has a one-year beta of 1, indicating average volatility during the period. Wipro shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
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Analysts have attributed the fall in IT stocks especially Wipro to the ongoing Russia- Ukraine war, the global economic slowdown and the Covid-19 lockdowns, which affected the international business of the Indian IT firms during the period.
In Q3 of the current fiscal, Wipro reported a 2.8 per cent year-on-year (YoY) rise in net profit at Rs 3,052.90 crore compared with Rs 2,969 crore in the same quarter last year. Revenue for the quarter came in at Rs 23,229 crore, up 14.35 per cent over Rs 20,313.60 crore in the same quarter last year. The IT major guided for a 11.5-12.0 per cent growth in IT Services revenues in constant currency terms (CC).
Here’s a look at what approach investors can take while trading in Wipro stock.
Rajesh Bhosale, Technical Analyst, Angel One said, “It is an underperformer as it didn’t participate in the recent run seen in the IT space. The stock prices have struggled to cross the 200SMA placed around Rs 410 and for the uptrend to begin the prices need to close strongly above this key average. On the flip side, Rs 380 – Rs 370 is a strong support zone. Overall, the counter is trading in a broad range showing no signs of major traction.”
Abhijeet from Tips2trade said, “A global slowdown due to rising inflation has led to a massive sell off in global & Indian IT stocks including Wipro. Currently, Wipro looks bearish on the Daily charts with strong resistance at Rs 405. A daily close below support of Rs 389 could lead to a target of Rs 372 in the near term.”
