Wipro hits 10-month low; chart signals further downside

Reuters May 4 | Updated on May 04, 2018 Published on May 04, 2018

Wipro shares today hit 10-month low and the chart has signalled further downside. The stock fell as much as 2.73 per cent to Rs 264.05, its lowest since July 14, 2017.

The stock's 50-day exponential moving average (EMA) has cut below its 200-day EMA, and a bearish trend is seen in the near-to-medium term.

The stock has also broken below a support at Rs 269, the 50 per cent Fibonacci retracement level of the uptrend from November 9, 2016 low to January 16, 2018 high. A negative MACD, which is below its signal line, is also unfavourable for the stock.

The nearest Fibonacci retracement support levels for the stock are placed at Rs 253.7 and Rs 234.7, while resistance is at Rs 269 and Rs 284.4.

In the last one month, analysts have cut Wipro's FY 2019 net profit estimates by 8.41 per cent compared with a cut of 2.7 per cent for Indian IT stocks, according to TR Eikon data. Wipro shares were down 13.6 per cent this year as of Thursday's close, while the Nifty IT Index gained 15.5 pct

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Published on May 04, 2018
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