Wipro Ltd. Technical Momentum Shifts to Bullish Amid Mixed Monthly Signals

Technical Trend Evolution and Price Momentum

Wipro’s current price stands at ₹269.15, up 0.69% from the previous close of ₹267.30, with intraday highs reaching ₹272.40 and lows at ₹266.10. The stock remains comfortably above its 52-week low of ₹225.05 but still below the 52-week high of ₹324.55, indicating room for potential upside. The recent technical trend upgrade from mildly bullish to bullish is supported by daily moving averages signalling a positive trajectory, which often serves as a reliable indicator of short-term momentum.

On the weekly timeframe, the Moving Average Convergence Divergence (MACD) indicator is firmly bullish, suggesting that upward momentum is gaining traction. However, the monthly MACD remains mildly bearish, indicating some caution for longer-term investors. This divergence between weekly and monthly MACD readings highlights a transitional phase where short-term strength is emerging but longer-term confirmation is pending.

RSI and Bollinger Bands: Mixed Signals but Bullish Bias

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This suggests that the stock is neither overbought nor oversold, providing a balanced backdrop for further price appreciation without immediate risk of a sharp reversal.

Conversely, Bollinger Bands present a more optimistic picture. Both weekly and monthly Bollinger Bands are bullish, indicating that price volatility is expanding upwards and the stock is trending towards the upper band. This technical setup often precedes sustained rallies, as it reflects increasing buying pressure and positive market sentiment.

Additional Technical Indicators: KST, Dow Theory, and OBV

The Know Sure Thing (KST) oscillator, a momentum indicator, is bullish on the weekly chart but mildly bearish on the monthly scale, mirroring the MACD’s mixed timeframe signals. This suggests that while short-term momentum is improving, longer-term momentum remains subdued, warranting a cautious but optimistic stance.

Dow Theory analysis shows a mildly bullish trend on the weekly timeframe, with no clear trend on the monthly chart. This further reinforces the notion of a nascent uptrend that requires confirmation over the coming weeks.

On-Balance Volume (OBV), which measures buying and selling pressure, is bullish weekly but neutral monthly. The weekly bullish OBV indicates that volume supports the recent price gains, a positive sign for the sustainability of the rally.

Comparative Returns and Market Context

Wipro’s recent returns demonstrate a mixed but generally positive performance relative to the broader Sensex benchmark. Over the past week, Wipro gained 1.07% compared to Sensex’s 0.85%, and over the last month, it surged 7.55% against Sensex’s modest 0.73%. Year-to-date returns also favour Wipro at 2.18% versus Sensex’s 0.64%, signalling stronger momentum in the early part of 2026.

However, over the trailing one-year period, Wipro’s stock has declined by 11.36%, contrasting with Sensex’s 7.28% gain. This underperformance reflects sector-specific challenges and broader market volatility during the period. Over longer horizons, Wipro’s returns remain respectable, with 3-year gains of 36.94% (Sensex: 40.21%), 5-year gains of 38.75% (Sensex: 79.16%), and a 10-year return of 157.99% compared to Sensex’s 227.83%. These figures highlight the stock’s steady growth trajectory, albeit lagging the broader market indices.

Mojo Score Upgrade and Market Implications

MarketsMOJO’s recent upgrade of Wipro’s Mojo Grade from Hold to Buy, with a Mojo Score of 75.0, underscores the improved technical and fundamental outlook. The company’s Market Cap Grade remains at 1, indicating a large-cap status with stable market capitalisation. This upgrade, dated 2 January 2026, reflects a reassessment of Wipro’s growth prospects, technical strength, and sector positioning.

Investors should note that the technical trend shift to bullish is supported by multiple indicators, particularly the daily moving averages and weekly MACD, which are critical for short- to medium-term trading strategies. The mixed monthly signals advise a measured approach for longer-term investors, who may wish to monitor confirmation of sustained momentum before increasing exposure.

Sector and Industry Positioning

Operating within the Computers - Software & Consulting sector, Wipro continues to leverage its established market presence and diversified service offerings. The sector has seen increased demand for digital transformation and IT consulting services, which bodes well for Wipro’s medium-term growth prospects. The technical momentum shift aligns with broader sectoral tailwinds, including increased IT spending and cloud adoption trends.

Nonetheless, investors should remain vigilant of potential headwinds such as global economic uncertainties, currency fluctuations, and competitive pressures from both domestic and international players. The current technical indicators suggest that Wipro is well-positioned to navigate these challenges, provided the bullish momentum sustains.

Outlook and Investment Considerations

In summary, Wipro Ltd.’s recent technical parameter changes signal a positive shift in price momentum, supported by bullish daily moving averages, weekly MACD, and Bollinger Bands. The absence of overbought conditions on RSI and the mixed monthly signals advise a balanced approach, combining optimism with caution. The upgrade in Mojo Grade to Buy further validates the improving outlook.

Investors seeking exposure to the Computers - Software & Consulting sector may find Wipro’s current technical setup attractive for tactical entries, especially given its relative outperformance over the past month and year-to-date periods. However, longer-term investors should monitor monthly indicators and broader market trends to confirm sustained strength before committing additional capital.

Overall, Wipro’s technical momentum shift, combined with its fundamental strengths and sector positioning, presents a compelling case for inclusion in diversified portfolios aiming to capitalise on the evolving IT services landscape.

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