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The outlook for the stock of Wipro (₹561.65) is bearish. Investors holding this stock can exit at current levels. The price action since October last year indicates a double-top formation. The sharp fall below ₹600 in January confirms the same and indicates a trend reversal. The neckline resistance is at ₹610. Next important resistance is in the ₹630-₹650 region. An intermediate bounce to ₹600 cannot be ruled out. But the upside could be capped at ₹610. As long as the stock trades below ₹610, the chances are high for it to fall further towards ₹480 and ₹450 in the coming weeks.
The level of ₹450 is the 50 per cent Fibonacci retracement support. The price action around ₹450 will need a close watch to see if the stock can bounce-back or not. A decisive break below ₹450 will increase the danger of the stock tumbling towards ₹385-₹380 in the coming months. The 61.8 per cent Fibonacci retracement support is at ₹381. Another important trendline support is at ₹360. From a bigger picture, long-term investors can consider entering this stock again in the ₹380-₹360 region.
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