Wipro Ltd Declines 2.53% Amid Mixed Technical Signals and Volatile Trading

2 February: Mildly Bullish Momentum Emerges Amid Mixed Technical Signals

Wipro began the week with a positive price movement, closing at Rs.242.20, up 2.32% from the previous Friday’s close of Rs.236.70. This rise was supported by daily moving averages signalling a shift from sideways to mildly bullish momentum. However, medium- and long-term indicators such as weekly and monthly MACD remained bearish or mildly bearish, reflecting a cautious technical outlook. The stock traded within a range of Rs.235.40 to Rs.247.30, well below its 52-week high of Rs.323.50 but above the 52-week low of Rs.225.05. Despite the short-term optimism, the overall technical landscape suggested resistance near Rs.247.30, limiting immediate upside potential.

3 February: Open Interest Surges 14.3% Amid Volatile Trading and Sideways Momentum

The derivatives market activity intensified on 3 February, with open interest rising sharply by 14.33% to 74,224 contracts. This surge accompanied a futures volume of 65,218 contracts and a combined futures and options notional value exceeding ₹10,824 crores, indicating robust speculative and hedging activity. The stock price edged up marginally by 0.10% to Rs.242.45, reflecting a sideways technical momentum shift from the previous day’s mildly bullish stance. Intraday volatility remained elevated at 5.25%, with the stock opening sharply higher but seeing significant volume traded near the day’s low, suggesting profit-taking or selling pressure at elevated levels. Despite gains over three consecutive sessions, Wipro underperformed its sector and the broader Sensex, highlighting mixed investor sentiment.

4 February: Sharp Gap Down and Intraday Low Signal Increased Selling Pressure

Wipro’s stock faced significant headwinds on 4 February, opening with a gap down of 3.09% and hitting an intraday low of Rs.226.5, a 6.58% drop from the previous close. This marked a fresh 52-week low, just 3.41% above the absolute low of Rs.225.05. The stock closed the day down 3.84%, underperforming the IT - Software sector which declined 3.51%, while the Sensex ended marginally higher by 0.05%. Intraday volatility surged to 46.05%, reflecting heightened uncertainty and selling pressure. Technically, Wipro traded below all major moving averages, signalling a bearish trend reversal after three days of gains. The stock’s proximity to key support levels and the sharp decline underscored the challenges it faces amid sectoral weakness and cautious investor sentiment.

4 February: Derivatives Open Interest Spikes 23.9% Amid Volatile Market Conditions

Concurrent with the price weakness, Wipro’s derivatives open interest surged by 23.87% to 90,402 contracts, accompanied by a volume of 94,281 contracts. The total derivatives notional value reached approximately ₹1,56,722 lakhs, with options dominating at ₹52,725 crores. This spike suggests fresh positioning by traders, possibly anticipating further volatility or directional moves. Despite the stock’s decline, Wipro marginally outperformed its sector on this day, which fell 5.53%. The elevated derivatives activity indicates increased hedging and speculative interest amid a bearish technical setup, with the stock trading below all key moving averages and reversing after prior gains.

5 February: Technical Momentum Turns Mildly Bearish Amid Continued Underperformance

On 5 February, Wipro’s technical momentum shifted further into a mildly bearish stance. The stock closed nearly flat at Rs.233.35, down 0.02%, but the underlying indicators painted a cautious picture. Weekly and monthly MACD and Bollinger Bands adopted bearish or mildly bearish positions, while daily moving averages remained mildly bullish, reflecting short-term support amid longer-term weakness. The Know Sure Thing (KST) indicator showed bullish signals weekly but bearish monthly, underscoring the mixed momentum. Wipro’s price remained closer to its 52-week low than its high, and the stock continued to underperform the Sensex, which gained 1.79% that day. The Mojo Score downgraded to 52.0 with a Hold rating, reflecting analyst caution amid deteriorating technical trends.

6 February: Week Closes Lower Despite Sensex Gains

Wipro ended the week at Rs.230.70, down 1.14% on the final trading day, extending the weekly decline to 2.53%. The Sensex, in contrast, gained 0.10% on the day and 1.51% for the week, highlighting Wipro’s relative underperformance. Trading volume was subdued at 316,103 shares, reflecting cautious investor participation. The stock remains below all major moving averages, with technical momentum still tilted bearish in the medium term. The persistent divergence from the broader market and sector performance underscores ongoing challenges for Wipro amid a complex technical and fundamental backdrop.

Key Takeaways

Wipro’s week was characterised by a volatile price trajectory and mixed technical signals. The initial mild bullish momentum on 2 February gave way to sideways and then bearish trends by midweek, culminating in a sharp intraday low and gap down on 4 February. The significant surges in open interest on 3 and 4 February indicate heightened speculative and hedging activity, reflecting uncertainty about the stock’s near-term direction.

Despite a relatively high dividend yield of 4.54%, Wipro’s price underperformed both its sector and the Sensex throughout the week. Technical indicators such as MACD, Bollinger Bands, and moving averages suggest a cautious outlook, with short-term support offset by medium- and long-term bearish momentum. The downgrade in Mojo Score to 52.0 and Hold rating further emphasises analyst caution.

Investors should note the stock’s proximity to its 52-week low and the persistent underperformance relative to benchmarks. While short-term rebounds remain possible, the overall technical and market context advises prudence amid ongoing sectoral headwinds and market volatility.

Conclusion

Wipro Ltd’s performance over the week ending 6 February 2026 reflects a complex interplay of technical momentum shifts, volatile trading, and cautious investor positioning. The stock’s decline of 2.53% against a 1.51% gain in the Sensex highlights its relative weakness amid broader market strength. Surges in derivatives open interest and elevated volatility signal active market engagement but also uncertainty about the stock’s direction.

Technical indicators present a mixed picture, with short-term bullish signals tempered by medium- and long-term bearish trends. The Hold rating and Mojo Score downgrade underscore the need for a measured approach. As Wipro navigates this challenging environment, investors should closely monitor technical developments, sector dynamics, and price action before making significant portfolio decisions.

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