Wipro Ltd. Technical Momentum Shifts Amid Bearish Signals

Technical Trend Overview and Momentum Analysis

Wipro’s technical trend has deteriorated from mildly bearish to outright bearish, signalling increased selling pressure. The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly charts, confirming sustained downward momentum. The MACD’s negative histogram and the position of the MACD line below the signal line reinforce this bearish stance, suggesting limited near-term upside potential.

Contrastingly, the Relative Strength Index (RSI) presents a more nuanced picture. While the weekly and monthly RSI readings are bullish, indicating some short-term buying interest and potential oversold conditions, this has not yet translated into a sustained price rally. The RSI’s divergence from other technical indicators may reflect temporary relief rallies or consolidation phases rather than a definitive trend reversal.

Bollinger Bands further corroborate the bearish outlook, with weekly readings mildly bearish and monthly readings firmly bearish. The stock price currently trades near the lower band, signalling increased volatility and potential downside risk. Daily moving averages also remain bearish, with the stock price below key averages such as the 50-day and 200-day moving averages, which traditionally act as resistance levels in downtrends.

Volume and Trend Confirmation Indicators

Volume-based indicators like On-Balance Volume (OBV) show mildly bearish signals on both weekly and monthly timeframes, indicating that selling volume is slightly outweighing buying volume. This suggests that the recent price declines are supported by genuine investor selling rather than low-volume corrections.

The Know Sure Thing (KST) oscillator, a momentum indicator that aggregates multiple rate-of-change calculations, remains bearish on weekly and monthly charts, reinforcing the negative momentum. Meanwhile, Dow Theory assessments show no clear trend on the weekly scale and a mildly bearish trend monthly, reflecting uncertainty and a lack of strong directional conviction among market participants.

Price Action and Key Levels

Wipro’s current price stands at ₹215.80, up 1.17% from the previous close of ₹213.30, with intraday highs reaching ₹219.35 and lows at ₹212.20. Despite this modest uptick, the stock remains significantly below its 52-week high of ₹316.50 and only marginally above its 52-week low of ₹209.15. This wide trading range highlights the stock’s vulnerability and the challenges in regaining upward momentum.

Investors should note that the stock’s inability to sustain levels above the 200-day moving average and the persistent bearish MACD and KST readings suggest that any rallies may be short-lived without fundamental catalysts or sectoral tailwinds.

Comparative Performance and Market Context

Wipro’s recent returns have lagged considerably behind the Sensex benchmark across multiple timeframes. Over the past week, the stock declined by 6.84%, compared to a modest 0.98% drop in the Sensex. The one-month performance is even more stark, with Wipro down 19.25% versus a near-flat 0.14% decline in the Sensex.

Year-to-date, Wipro has lost 18.07%, while the Sensex has fallen by only 2.08%. Over the last year, the divergence is more pronounced: Wipro’s stock price has dropped 29.35%, whereas the Sensex has gained 9.81%. Even over longer horizons, Wipro’s returns remain subdued relative to the benchmark, with a 3-year return of 6.25% against Sensex’s 36.80%, and a 5-year return of 0.30% compared to Sensex’s 61.40%. Although the 10-year return of 118.25% is positive, it still trails the Sensex’s 256.90% gain.

This underperformance highlights structural challenges within Wipro and the broader Computers - Software & Consulting sector, which has faced headwinds from global macroeconomic uncertainties and competitive pressures.

MarketsMOJO Rating and Outlook

Reflecting these technical and fundamental concerns, MarketsMOJO has downgraded Wipro’s Mojo Grade from Hold to Sell as of 17 February 2026, with a current Mojo Score of 47.0. The Market Cap Grade remains at 1, indicating a relatively low valuation tier within its sector. This downgrade signals a cautious stance for investors, suggesting that the stock may face further downside risks unless there is a meaningful improvement in earnings momentum or sectoral tailwinds.

Investors should weigh these technical signals alongside fundamental factors before considering new positions, as the prevailing bearish momentum and relative weakness against the Sensex suggest limited near-term upside.

Investor Takeaway and Strategic Considerations

Wipro’s current technical landscape suggests that the stock is entrenched in a bearish phase, with multiple indicators confirming downward momentum. The divergence between bullish RSI readings and bearish MACD, KST, and moving averages points to a complex technical environment where short-term rallies may occur but are unlikely to sustain without fundamental improvements.

Given the stock’s significant underperformance relative to the Sensex and the downgrade to a Sell rating, investors should exercise caution. Those holding existing positions may consider tightening stop-loss levels or reducing exposure, while prospective buyers might await clearer signs of trend reversal or sectoral recovery.

Long-term investors should also monitor Wipro’s quarterly earnings and strategic initiatives closely, as sustained revenue growth and margin expansion could eventually shift technical indicators back to a more favourable stance.

Sector and Market Outlook

The Computers - Software & Consulting sector continues to face headwinds from global economic uncertainties, currency fluctuations, and competitive pressures from emerging technologies. Wipro’s technical challenges mirror broader sectoral trends, emphasising the need for investors to adopt a selective approach within this space.

Monitoring technical parameters such as MACD, RSI, and moving averages alongside fundamental developments will be crucial for navigating this volatile environment.

Conclusion

In summary, Wipro Ltd. is currently exhibiting bearish technical momentum with limited signs of immediate recovery. The downgrade by MarketsMOJO to a Sell rating, combined with persistent underperformance against the Sensex, underscores the need for prudence. Investors should closely track technical signals and fundamental updates before making allocation decisions in this large-cap Computers - Software & Consulting stock.

Unlock special upgrade rates for a limited period. Start Saving Now →