Wipro Ltd. Technical Momentum Shifts Amid Mixed Indicator Signals

Price Movement and Market Context

Wipro’s current market price stands at ₹242.05, marking a 2.26% increase from the previous close of ₹236.70. The stock traded within a range of ₹235.40 to ₹247.30 during the latest session, reflecting heightened intraday volatility. Despite this uptick, the stock remains significantly below its 52-week high of ₹323.50, while comfortably above the 52-week low of ₹225.05.

Comparatively, Wipro’s returns have underperformed the broader Sensex benchmark over multiple timeframes. Year-to-date, the stock has declined by 8.11%, whereas the Sensex has fallen by 5.28%. Over the past year, Wipro’s return stands at -21.74%, contrasting with the Sensex’s positive 5.16%. Longer-term returns over three, five, and ten years show moderate gains of 20.30%, 15.80%, and 130.03% respectively, but these lag behind the Sensex’s corresponding returns of 35.67%, 74.40%, and 224.57%.

Technical Indicators: A Mixed Picture

The technical landscape for Wipro is nuanced, with several key indicators signalling divergent trends across different timeframes. The recent shift from a sideways to a mildly bullish trend suggests an emerging positive momentum, yet caution is warranted given the mixed signals.

The Moving Average Convergence Divergence (MACD) indicator presents a bearish outlook on the weekly chart, while the monthly MACD is mildly bearish. This divergence indicates that short-term momentum may be weakening, even as longer-term trends remain subdued. The Relative Strength Index (RSI) offers a more optimistic view, with no significant signal on the weekly timeframe but a bullish indication on the monthly chart, suggesting underlying strength building over the medium term.

Bollinger Bands, which measure volatility and price levels relative to moving averages, are mildly bearish on both weekly and monthly charts. This implies that the stock price is experiencing some downward pressure or consolidation within a narrowing range, potentially signalling a pause before a decisive move.

Moving Averages and Momentum Oscillators

Daily moving averages for Wipro have turned mildly bullish, signalling that short-term price trends are gaining upward traction. This is a positive development for traders looking for confirmation of momentum shifts. However, the Know Sure Thing (KST) oscillator presents a split view: bullish on the weekly timeframe but bearish on the monthly chart. This suggests that while short-term momentum is improving, longer-term momentum remains under pressure.

Dow Theory analysis further complicates the picture, with a mildly bearish stance on the weekly chart and no clear trend on the monthly timeframe. This lack of definitive trend confirmation advises prudence for investors considering new positions.

On-Balance Volume (OBV), a volume-based indicator used to confirm price trends, shows no clear trend on either weekly or monthly charts. This absence of volume confirmation may indicate that recent price movements lack strong participation from institutional investors, which could limit the sustainability of any rally.

Mojo Score and Analyst Ratings

Wipro currently holds a Mojo Score of 68.0, reflecting a Hold rating, downgraded from a Buy on 19 January 2026. This adjustment reflects the mixed technical signals and the company’s recent underperformance relative to the broader market. The Market Cap Grade remains at 1, indicating a relatively modest market capitalisation compared to peers in the Computers - Software & Consulting sector.

Investors should weigh these technical assessments alongside fundamental factors before making allocation decisions. The downgrade to Hold suggests that while Wipro is not a sell, it may not offer the same upside potential as other sector peers or market leaders at present.

Sector and Market Comparison

Within the Computers - Software & Consulting sector, Wipro’s performance and technical profile are somewhat subdued. The sector has seen varied momentum, with some large caps outperforming the market and others struggling to regain lost ground. Wipro’s recent price momentum shift to mildly bullish is a tentative step forward but remains overshadowed by bearish monthly MACD and Bollinger Band signals.

Comparing Wipro’s returns to the Sensex highlights the stock’s relative weakness, particularly over the one-year and year-to-date periods. This underperformance may reflect sector-specific headwinds or company-specific challenges that have yet to be fully resolved.

Investor Takeaway

Wipro’s technical parameters indicate a cautious shift towards bullish momentum, particularly on shorter timeframes. The daily moving averages and weekly KST oscillator support this view, suggesting potential for modest price appreciation in the near term. However, bearish signals from the MACD, Bollinger Bands, and Dow Theory on weekly and monthly charts temper enthusiasm, signalling that the stock may face resistance before a sustained uptrend can be confirmed.

Investors should monitor key technical levels closely, including the recent intraday high of ₹247.30 and the 52-week low of ₹225.05, which may act as support and resistance zones. The lack of volume confirmation via OBV further advises prudence, as strong institutional participation is often necessary to drive meaningful trend changes.

Given the Hold rating and Mojo Score downgrade, Wipro appears best suited for investors with a moderate risk appetite who are willing to wait for clearer technical confirmation before increasing exposure. Those seeking more aggressive growth or stronger momentum may consider exploring alternative large caps within the sector or broader market.

Conclusion

Wipro Ltd. is at a technical crossroads, with a shift from sideways to mildly bullish momentum tempered by mixed indicator signals. While short-term technicals offer some optimism, longer-term bearish trends and volume neutrality suggest that investors should remain cautious. The stock’s underperformance relative to the Sensex and sector peers further underscores the need for careful analysis before committing capital.

As always, combining technical insights with fundamental analysis and sector outlooks will provide the most comprehensive framework for investment decisions in this evolving market environment.

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