Wipro Ltd. Technical Momentum Shifts Amid Bearish Signals and Market Underperformance

Price Performance and Market Context

As of 5 February 2026, Wipro’s share price closed at ₹233.60, down 3.65% from the previous close of ₹242.45. The stock traded within a range of ₹226.50 to ₹236.00 during the day, remaining closer to its 52-week low of ₹225.05 than its high of ₹323.50. This decline contrasts sharply with the broader Sensex, which has shown modest gains over comparable periods.

Examining returns, Wipro has underperformed the Sensex across multiple timeframes. Over the past week, the stock declined by 1.60% while the Sensex rose 1.79%. The one-month return for Wipro was a steep -13.21%, compared to the Sensex’s -2.27%. Year-to-date, Wipro’s loss stands at -11.31%, significantly worse than the Sensex’s -1.65%. Over the last year, the divergence is even more pronounced, with Wipro down 26.13% against the Sensex’s 6.66% gain. Longer-term returns over three, five, and ten years show Wipro lagging the benchmark, with 14.57%, 8.68%, and 122.64% respectively, versus the Sensex’s 37.76%, 65.60%, and 244.38%.

Technical Indicator Analysis

The recent technical parameter changes highlight a shift in momentum that investors should carefully consider. The weekly technical trend has moved from a neutral sideways stance to mildly bearish, signalling increased selling pressure. On the monthly scale, the trend remains mildly bearish, suggesting that the downward momentum may persist in the medium term.

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. The weekly MACD is bearish, indicating that short-term momentum is weakening, while the monthly MACD is mildly bearish, reflecting a more gradual decline in momentum over a longer horizon. This divergence suggests that while immediate selling pressure is evident, the longer-term downtrend is less severe but still negative.

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no clear signal, hovering in neutral territory. This implies that the stock is neither overbought nor oversold, leaving room for further directional movement depending on market catalysts.

Bollinger Bands reinforce the bearish outlook, with both weekly and monthly bands indicating downward pressure. The stock price is trending towards the lower band, signalling increased volatility and potential continuation of the downtrend.

Moving Averages and Other Momentum Indicators

On a daily basis, moving averages provide a mildly bullish signal, suggesting some short-term support around current price levels. However, this is tempered by the weekly and monthly KST (Know Sure Thing) indicator, which is bullish on the weekly timeframe but bearish monthly, reflecting conflicting momentum signals that may cause volatility in the near term.

Dow Theory assessments align with the broader bearish sentiment, with both weekly and monthly readings mildly bearish. This theory, which analyses market trends through price action and volume, indicates that the stock is in a tentative downtrend phase.

On-Balance Volume (OBV) analysis shows a mildly bearish trend on the weekly chart, signalling that volume is not supporting price advances. The monthly OBV shows no clear trend, suggesting indecision among investors over the longer term.

Mojo Score and Rating Revision

MarketsMOJO’s proprietary scoring system currently assigns Wipro a Mojo Score of 52.0, categorising the stock as a Hold. This represents a downgrade from its previous Buy rating, effective from 19 January 2026. The downgrade reflects the deteriorating technical indicators and the stock’s underperformance relative to the broader market and sector peers.

The Market Cap Grade remains at 1, indicating a relatively modest market capitalisation compared to larger peers in the Computers - Software & Consulting sector. This factor, combined with the technical signals, suggests that investors should exercise caution and monitor developments closely before committing additional capital.

Sector and Industry Context

Within the Computers - Software & Consulting sector, Wipro faces increasing competition and margin pressures, which have contributed to its subdued price action. The sector itself has experienced mixed performance, with some large-cap peers maintaining stronger momentum. Wipro’s technical indicators, particularly the bearish MACD and Bollinger Bands on weekly and monthly charts, underscore the challenges the company faces in regaining upward momentum.

Investors should also consider the broader macroeconomic environment, including global technology spending trends and currency fluctuations, which may impact Wipro’s earnings outlook and stock performance.

Investor Takeaways and Outlook

Wipro’s current technical profile suggests a cautious stance for investors. The combination of bearish weekly MACD, Bollinger Bands, and Dow Theory signals, alongside a downgrade to Hold, indicates that the stock may face continued pressure in the near term. The absence of strong RSI signals suggests that the stock is not yet oversold, leaving room for further downside.

However, the mildly bullish daily moving averages and weekly KST provide some counterbalance, hinting at potential short-term support around current price levels near ₹233.60. Investors should watch for confirmation of trend reversals or further deterioration in momentum before adjusting positions.

Comparatively, Wipro’s underperformance relative to the Sensex and sector peers over multiple timeframes highlights the need for selective stock picking within the technology space. Those seeking exposure to the Computers - Software & Consulting sector may benefit from considering alternative large caps with stronger technical and fundamental profiles.

In summary, Wipro Ltd. currently exhibits a technical momentum shift towards a mildly bearish outlook, reinforced by a recent rating downgrade and underwhelming price performance. Investors should remain vigilant, monitor key technical indicators, and consider broader sector dynamics when evaluating the stock’s prospects.

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