Investors with a short-term horizon can sell the stock of Wipro at current levels. The stock was in a medium-term uptrend from the key support level of ₹255 tested in June and until it registered a 52-week high of ₹339 on September 21. However, triggered by negative divergence in the daily indicators and profit-booking at higher levels, the stock changed direction. Since then, the stock has been in a short-term downtrend. While trending down, the stock breached a key support at ₹330 in late September that has turned into a significant resistance now. The stock tested this resistance recently and continued to decline.

On Tuesday, the stock tumbled almost 4 per cent with good volume and has closed below the key support level of ₹313. It hovers below the 21- and 50-day moving averages. The daily relative strength index is on the brink of entering the bearish zone from the neutral region and the weekly RSI is charting lower in the neutral region. Further, the daily price rate of change indicator hovers in the negative territory implying selling interest.

The short-term outlook is bearish for the stock. It can extend the down move and reach the price targets of ₹296.5 and ₹290 in the short term. Traders can sell the stock with a stop-loss at ₹316 level.

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