Wipro Ltd Falls 10.81%: 5 Key Factors Driving the Sharp Weekly Decline

Monday, 19 January: Sharp Gap Down and Heavy Selling Pressure

Wipro opened the week with a significant gap down of 5.35%, reflecting immediate market concerns. The stock touched an intraday low of Rs.241.75, a 9.54% drop from the previous close, before settling with a steep 7.97% loss. This decline was markedly worse than the Sensex’s 0.49% fall and the Computers - Software & Consulting sector’s 1.25% drop, highlighting company-specific pressures.

Trading volume surged to over 2.14 crore shares, with a traded value exceeding ₹524 crore on the NSE, placing Wipro among the most actively traded stocks by value. Institutional participation was notable, with delivery volumes on 16 January rising 63.99% above the five-day average, signalling increased investor engagement despite the price weakness.

Technically, the stock traded below all major moving averages (5, 20, 50, 100, and 200-day), indicating sustained downward momentum. The weighted average price skewed towards the intraday low, suggesting dominant selling pressure throughout the session. Despite this, Wipro maintained a relatively high dividend yield of 4.11%, which may offer some income support amid volatility.

Monday, 19 January: Surge in Put Option Activity and Open Interest

Reflecting bearish sentiment, Wipro emerged as the most actively traded stock in the put options segment, with 6,091 contracts at the ₹240 strike expiring on 27 January 2026. The turnover in put options reached ₹54.27 crore, indicating significant hedging or speculative positioning anticipating further downside.

Open interest in derivatives surged by 28.4%, with 17,417 additional contracts added, bringing total open interest to 78,705. Futures and options combined notional value exceeded ₹1.65 lakh crores, underscoring the scale of market activity. This spike in open interest amid falling prices suggests new short positions or protective hedging strategies are being established.

Tuesday, 20 January: Continued Price Pressure and Technical Momentum Shift

Wipro’s share price declined further by 7.95% to close at Rs.246.00, continuing the downward trend from Monday. The stock traded between Rs.241.75 and Rs.252.95, reflecting ongoing volatility. This underperformance contrasted with the Sensex’s 1.82% decline, signalling company-specific challenges.

Technical indicators revealed a nuanced picture. While daily moving averages remained mildly bullish, weekly and monthly momentum oscillators such as MACD and KST showed mixed signals, with weekly charts bullish but monthly charts mildly bearish. Bollinger Bands on weekly and monthly timeframes turned bearish, indicating increased volatility and downward pressure.

MarketsMOJO downgraded Wipro’s Mojo Grade from Buy to Hold on this day, reflecting the deteriorating technical outlook despite the company’s strong fundamentals and dividend yield. The stock’s market capitalisation grade remained at 1, confirming its large-cap status.

Wednesday to Friday: Stabilisation Attempts Amid Mixed Signals

On 21 January, Wipro’s price movement was relatively flat, closing marginally down by 0.17% at Rs.239.55, as the market digested the prior sharp declines. The Sensex also declined by 0.47%, reflecting broader market softness. On 22 January, the stock saw a modest recovery, gaining 0.48% to Rs.240.70, supported by a positive Sensex move of 0.76%. However, this uptick was short-lived as the stock closed lower by 0.98% at Rs.238.35 on 23 January, ending the week near its lows.

Throughout these sessions, technical momentum remained fragile. The stock continued to trade below key moving averages, and volume levels were subdued compared to Monday’s surge. The mixed technical indicators and persistent put option interest suggested ongoing caution among investors.

Daily Price Comparison: Wipro vs Sensex (19-23 Jan 2026)

Key Takeaways from the Week

1. Significant Underperformance: Wipro’s 10.81% weekly decline far exceeded the Sensex’s 3.31% fall, reflecting company-specific challenges amid broader market weakness.

2. Heavy Trading and Institutional Interest: The stock saw exceptional volume and value turnover on Monday, indicating active repositioning by institutional investors despite price declines.

3. Bearish Derivatives Activity: A sharp surge in put option volumes and open interest highlighted growing bearish sentiment and hedging ahead of the 27 January expiry.

4. Mixed Technical Signals: While daily moving averages showed mild bullishness early in the week, weekly and monthly momentum indicators turned cautious to bearish, culminating in a Mojo Grade downgrade from Buy to Hold.

5. Dividend Yield Support: Despite price weakness, Wipro’s attractive 4.11% dividend yield remains a positive feature for income-focused investors amid volatility.

Conclusion: Navigating a Volatile Phase for Wipro Ltd

Wipro Ltd’s share price faced intense downward pressure during the week of 19-23 January 2026, driven by a combination of broader market volatility, sector-specific headwinds, and company-level selling. The sharp gap down and heavy volume on Monday set the tone for a challenging week, with persistent bearish positioning evident in the derivatives market. Although technical momentum showed some early signs of resilience, mixed signals and a subsequent downgrade to Hold reflect the cautious sentiment prevailing among investors.

Wipro’s strong market capitalisation and attractive dividend yield provide some fundamental support, but the stock’s technical positioning below key moving averages and heavy put option activity suggest near-term risks remain elevated. Investors should monitor price action and volume trends closely in the coming sessions, particularly around the 27 January options expiry, to gauge whether selling pressure abates or intensifies.

Overall, the week underscored the complex interplay of fundamental quality and technical caution shaping Wipro’s market performance, highlighting the importance of balanced analysis in navigating large-cap technology stocks amid uncertain market conditions.

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