Technical Analysis

Wipro (₹201.7): Buy

Yoganand D BL Research Bureau | Updated on May 27, 2020 Published on May 28, 2020
Wipro

The stock of Wipro jumped 6.8 per cent with above average volume, breaking above a vital resistance level of ₹196 on Wednesday. Investors with a short-term perspective can buy the stock at current levels.

Since recording a 52-week low at ₹159 in mid-March this year, the stock has been in a medium term uptrend. But, encountering a key resistance at ₹196 in early April, the stock was on a sideways movement in the band between ₹175 and ₹196 until recently.

With the recent 6.8-per cent jump, the stock has moved out of the sideways movement and appears to have resumed its medium-term uptrend.

It had breached the 21- and 50-DMAs and trades well above them. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Moreover, the daily price rate of change indicator features in the positive territory implying buying interest. There has been an increase in daily volume over the past four trading sessions.

The short-term forecast is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹210 and ₹214 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹197 levels.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on May 28, 2020
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