Wipro Ltd Falls 1.94% This Week: 9 Key Factors Behind the Decline

16 February 2026: Modest Opening Decline Amid Positive Sensex

Wipro began the week at Rs.213.30, down 0.37% from the previous close, while the Sensex gained 0.70% to close at 36,787.89. The stock’s volume was moderate at 7.8 lakh shares, indicating a cautious start. The divergence between Wipro’s decline and the Sensex’s rise foreshadowed the stock’s relative weakness for the week ahead.

17 February 2026: Death Cross Formation and Elevated Trading Activity

On 17 February, Wipro’s stock rebounded by 1.17% to Rs.215.80, outperforming the Sensex’s 0.32% gain. This day was notable for the formation of a Death Cross, where the 50-day moving average crossed below the 200-day moving average, signalling a potential bearish trend. Despite this technical warning, the stock saw robust trading volumes exceeding 1.06 crore shares by value and 56.95 lakh shares by volume, reflecting heightened investor interest and institutional participation.

Intraday, the stock touched a high of Rs.217.69, a 2.08% rise from the open, but remained below key moving averages, indicating ongoing technical resistance. Delivery volumes surged by 19.31%, suggesting accumulation amid mixed signals. However, the overall technical backdrop remained cautious, with the MarketsMOJO Mojo Score downgraded from Buy to Hold earlier in the month.

18 February 2026: Sharp Decline and Downgrade to Sell

The stock faced a significant setback on 18 February, closing at Rs.212.00, down 1.76% for the day and marking a 33.27% decline from its peak levels. This steep correction was accompanied by a downgrade from MarketsMOJO to a Sell rating, reflecting weak technicals and flat financial results. Operating profit growth stagnated at 5.44% annually over five years, with profit before tax declining 9.29% to Rs.3,128.60 crore.

Technical indicators worsened, with the Moving Average Convergence Divergence (MACD), Bollinger Bands, and Know Sure Thing (KST) oscillator all signalling bearish momentum. The stock traded near its 52-week low, just 3.48% above the bottom, and remained below all major moving averages. Despite a dividend yield of 5.16% and strong return on equity of 16.48%, the market sentiment turned decidedly negative amid operational challenges and underperformance relative to the Sensex.

19 February 2026: Continued Weakness Amid Market Volatility

Wipro’s stock declined further by 0.35% to Rs.211.25, underperforming the Sensex which fell 1.45% amid broader market volatility. Trading volumes were subdued at 9.39 lakh shares, reflecting investor caution. The stock remained below key moving averages, with technical momentum indicators maintaining a bearish stance. Delivery volumes increased sharply, suggesting ongoing investor participation but with a bias towards selling pressure.

20 February 2026: New 52-Week Low Amid Mixed Market Signals

On the final trading day of the week, Wipro’s stock fell 0.62% to close at Rs.209.95, touching a fresh 52-week low of Rs.208.40 during the session. This decline occurred despite the Sensex gaining 0.41%, highlighting the stock’s continued underperformance. The stock remained below all key moving averages, reinforcing the bearish technical outlook.

Financial metrics continued to weigh on sentiment, with operating profit margins subdued at 18.24% and debtor turnover ratio at a low 7.56 times. The company’s market capitalisation stood at approximately Rs.2,21,344 crores, with a dividend yield of 5.21% providing some income appeal. However, the downgrade to a Sell rating and the sustained price weakness underscore the challenges facing Wipro in regaining investor confidence.

Key Takeaways

Bearish Technical Signals: The formation of a Death Cross and sustained trading below all major moving averages indicate a weakening medium- to long-term trend. Momentum indicators such as MACD, Bollinger Bands, and KST confirm bearish momentum, while the recent downgrade to a Sell rating by MarketsMOJO reflects this technical deterioration.

Elevated Trading Volumes and Institutional Interest: Despite price weakness, trading volumes and delivery participation surged midweek, suggesting accumulation attempts by investors. However, the sharp rise in open interest in derivatives alongside price declines points to increased bearish positioning and hedging activity.

Financial Performance Challenges: Flat operating profit growth, declining profit before tax, and margin pressures have weighed on investor sentiment. The company’s debtor turnover ratio indicates slower receivables collection, adding to operational concerns.

Valuation and Dividend Appeal: Wipro’s price-to-earnings ratio remains below industry peers, and the dividend yield above 5% offers income appeal. The recent shift in valuation grading from very attractive to attractive suggests a more compelling entry point despite near-term risks.

Continued Underperformance vs Sensex: The stock’s 1.94% weekly decline contrasts with the Sensex’s 0.39% gain, extending a pattern of underperformance across multiple time horizons. This divergence highlights company-specific challenges amid a relatively stable broader market.

Conclusion

Wipro Ltd’s performance over the week ending 20 February 2026 was marked by a clear downtrend, driven by bearish technical developments, disappointing financial metrics, and cautious investor sentiment. The stock’s decline to a 52-week low amid rising open interest and delivery volumes underscores the complexity of its current phase, where accumulation attempts coexist with growing bearish bets.

While valuation metrics and dividend yield provide some support, the downgrade to a Sell rating and persistent underperformance relative to the Sensex suggest that the stock faces significant near-term headwinds. Investors should closely monitor technical signals and upcoming financial results for signs of operational improvement or trend reversal before considering increased exposure.

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