Wipro Ltd. Opens with Significant Gap Down Amid Market Concerns and Weak Start

Opening Price Drop and Intraday Volatility

On 4 February 2026, Wipro Ltd. (Stock ID: 531139) opened at a price reflecting a 3.09% loss compared to its prior closing level. This gap down opening was a clear indication of overnight market pressures. The stock further declined during the trading session, touching an intraday low of ₹226.50, marking a steep 6.58% drop from the previous day’s close. Such a pronounced fall within the day highlights significant selling pressure and elevated uncertainty among market participants.

Volatility metrics for the day were notably high, with an intraday volatility of 46.05% calculated from the weighted average price. This level of price fluctuation is considerably above typical ranges for Wipro, signalling a turbulent trading environment. The stock’s price action today also underperformed its sector peers, with the IT - Software sector declining by 3.51%, while Wipro’s loss stood at 3.88% for the day, compared to a marginal 0.05% gain in the Sensex benchmark.

Recent Performance and Technical Indicators

Wipro’s recent trend shows a reversal after three consecutive days of gains, with today’s session marking a clear setback. The stock currently trades close to its 52-week low, being only 3.41% above the lowest price of ₹225.05 recorded over the past year. This proximity to the lower range adds to the cautious sentiment surrounding the stock.

From a technical standpoint, Wipro is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning typically indicates a bearish trend in the short to long term. Weekly and monthly technical indicators present a mixed picture: the MACD is bearish on a weekly basis and mildly bearish monthly, while the RSI shows no signal weekly but a bullish stance monthly. Bollinger Bands suggest mild bearishness on both weekly and monthly charts, and the KST indicator is bullish weekly but bearish monthly. The Dow Theory assessment is mildly bearish weekly with no clear monthly trend, and the On-Balance Volume (OBV) is mildly bearish weekly with no monthly trend.

Market Cap and Sector Context

Wipro’s market capitalisation grade stands at 1, reflecting its position within the broader market. The company’s Mojo Score is 58.0, with a current Mojo Grade of Hold, downgraded from Buy as of 19 January 2026. This adjustment in rating aligns with the recent price weakness and technical signals. The stock’s dividend yield remains relatively high at 4.54%, which may offer some income appeal despite the price pressures.

Comparatively, Wipro’s one-month performance shows a decline of 13.41%, significantly underperforming the Sensex’s 2.31% drop over the same period. This divergence highlights the stock’s relative weakness within the market and sector context.

Signs of Panic Selling and Recovery Attempts

The sharp gap down and subsequent intraday lows suggest an initial phase of panic selling, likely triggered by overnight news or broader market concerns affecting the IT - Software sector. The stock’s high volatility and underperformance relative to its sector peers reinforce this interpretation. However, the presence of some recovery attempts during the session, as indicated by the weighted average price and intraday price movements, points to cautious buying interest emerging at lower levels.

Despite these recovery signs, the overall technical and price action environment remains subdued, with the stock yet to regain key moving averages or demonstrate sustained upward momentum. The mixed technical signals across different timeframes further complicate the outlook, suggesting that investors remain watchful amid ongoing market uncertainties.

Summary of Key Metrics and Market Reaction

In summary, Wipro Ltd.’s trading session on 4 February 2026 was characterised by a significant gap down opening at a 3.09% discount to the previous close, followed by a steep intraday decline to ₹226.50. The stock’s performance lagged both its sector and the broader market, with a day change of -3.88% against the Sensex’s 0.05% gain. The company’s proximity to its 52-week low and its position below all major moving averages reflect ongoing price weakness.

Technical indicators present a nuanced picture, with bearish signals dominating weekly charts and mixed signals on monthly timeframes. The high dividend yield of 4.54% remains a notable feature amid the price volatility. Overall, the market’s reaction today underscores prevailing concerns and cautious sentiment towards Wipro Ltd. within the Computers - Software & Consulting sector.

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