Analysis: WIPRO (WIT)

Today’s pick is WIPRO [stockquote]WIPRO[/stockquote]. The stock began 2012 with a slight upside move to see resistance around the Rs. 450 levels. After testing that resistance for 2 months, the stock started moving downwards till it reached Rs. 340. This acted as support for the stock in the later months as well. And post November, the stock has been on an up-trend. In the last three months, the stock has moved +10% vs. +5% of the Nifty’s.

WIPRO Technical analysis chart

Oscillators RSI and CMO are closing towards the over-bought territory.

The MACD line is moving above the signal line in a bullish mode confirmed by the increasing histogram levels. The long-term GMMA lines are moving very close to each other unable to suggest any bias for the long-term. Although, the short-term GMMA lines are suggesting a bullish move given the expansion of the lines.

WIPRO correlation chart

WIPRO’s average correlation with the Nifty is 0.56, which is positive and strong. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[/stockquote]

WIPRO volatility chart

WIPRO has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility currently is in the lower end of the range.

WIPRO Analyst coverage

Analysts are kind of bullish for the stock, given the high average ratings from various analysts. Better earnings this quarter could add on to the glory of the stock.

Given these technicals, we suggest a short-term hold and a long-term BUY for the scrip. We suggest traders to use trailing stop-losses in order to book profits if a trend-reversal were to take place.

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Analysis: WIPRO

Today’s pick is [stockquote]WIPRO[/stockquote]. The last year saw the stock trading in a 330 to 450 range and the stock just tested the support levels around 52 week lows. In the past 50 days the stock made return of 3.8% as against 6.2% made by Nifty.

The stock has been in a down-trend since April this year, with a support near the 335 levels and resistance around 450.


Oscillators RSI and CMO are at currently at 54 and 6 and are hovering in the no man’s land.

MACD line just crossed the signal line and is on a rise; the histogram levels are rising as well suggesting short-term up-trend.

The GMMA chart is not suggesting any directional move as of now. The short-term lines are constricting and long-term lines are spreading. When the lines fan out, we will be able to take a stand on the direction. image

WIPRO’s average correlation of 0.56 with the Nifty is positive and strong. The stock will not replicate the movements of Nifty closely. [stockquote]NIFTYBEES[/stockquote]


WIPRO has a historical volatility in the range of 0.3 to 0.7. The scrip’s volatility is currently in the middle range and hence should not be a concern to the traders.

Looking at these technicals a short-term buy is suggested. For the long-term outlook of the scrip we will have to wait for GMMA lines to give some direction.