Wipro Ltd. Technical Momentum Shifts to Sideways Amid Mixed Indicator Signals

Technical Trend Overview

Recent analysis reveals that Wipro's technical trend has softened from mildly bullish to sideways, reflecting a pause in upward momentum. The daily moving averages maintain a mildly bullish posture, suggesting some underlying strength in the short term. However, weekly and monthly indicators paint a more cautious picture. The Moving Average Convergence Divergence (MACD) is bearish on a weekly basis and mildly bearish monthly, indicating that momentum is waning over longer periods.

The Relative Strength Index (RSI) offers a mixed signal: weekly RSI shows no definitive trend, while the monthly RSI remains bullish, hinting at potential underlying strength that could support a rebound if conditions improve. Bollinger Bands on both weekly and monthly charts are mildly bearish, signalling that price volatility is contracting and the stock may be entering a consolidation phase.

Momentum and Volume Indicators

The Know Sure Thing (KST) indicator diverges between timeframes, with a bullish weekly reading contrasting a bearish monthly signal. This divergence suggests short-term momentum may be improving even as longer-term momentum deteriorates. The On-Balance Volume (OBV) indicator is mildly bearish weekly and neutral monthly, implying that volume trends are not strongly supporting price advances at present.

Dow Theory assessments align with this cautious stance, showing a mildly bearish weekly trend and no clear monthly trend. Collectively, these signals suggest that while short-term price action may hold some promise, the broader trend remains uncertain and potentially vulnerable to downside risks.

Price Action and Market Context

Wipro’s current price stands at ₹242.20, marginally up 0.06% from the previous close of ₹242.05. The stock traded within a range of ₹239.20 to ₹244.15 today, remaining well below its 52-week high of ₹323.50 and just above its 52-week low of ₹225.05. This price behaviour underscores the sideways momentum and the lack of a decisive breakout or breakdown.

Comparing Wipro’s returns against the Sensex reveals a challenging environment for the stock. Over the past week, Wipro outperformed the Sensex with a 1.62% gain versus the benchmark’s 0.16%. However, over longer periods, the stock has lagged significantly. The one-month return is -10.01% compared to Sensex’s -4.78%, and year-to-date returns show a decline of -8.05% against the Sensex’s -4.17%. Over one year, Wipro’s return is deeply negative at -20.58%, while the Sensex gained 5.37%. Even over three and five years, Wipro’s returns of 18.41% and 13.14% respectively trail the Sensex’s 36.26% and 64.00%. The ten-year return of 128.02% also falls short of the Sensex’s 232.80%.

Mojo Score and Rating Revision

MarketsMOJO’s proprietary scoring system currently assigns Wipro a Mojo Score of 58.0, reflecting a Hold rating. This is a downgrade from the previous Buy rating, which was revised on 19 January 2026. The downgrade aligns with the technical indicators signalling a loss of bullish momentum and the sideways trend emerging in price action. The Market Cap Grade remains at 1, indicating a relatively modest market capitalisation compared to peers in the Computers - Software & Consulting sector.

The downgrade to Hold suggests that investors should exercise caution and await clearer directional signals before committing to new positions. The mixed technical signals and underperformance relative to the Sensex over multiple timeframes reinforce this prudent stance.

Moving Averages and Short-Term Outlook

Daily moving averages remain mildly bullish, with the stock price hovering just above key short-term averages. This suggests some support for the stock in the near term, potentially limiting downside risk. However, the lack of confirmation from weekly and monthly indicators tempers enthusiasm for a sustained rally.

Investors should monitor whether Wipro can break above resistance levels near ₹244 and sustain gains above the 50-day and 200-day moving averages. Failure to do so could see the stock retest recent lows near ₹225, especially if broader market conditions deteriorate.

Sector and Industry Context

Within the Computers - Software & Consulting sector, Wipro faces stiff competition and evolving market dynamics. The sector has seen mixed performance, with some peers outperforming due to stronger earnings growth and innovation. Wipro’s sideways momentum and technical caution reflect broader sector challenges, including margin pressures and global economic uncertainties impacting IT spending.

Investor Takeaway

Wipro Ltd.’s technical momentum shift to a sideways trend, combined with mixed signals from key indicators such as MACD, RSI, and moving averages, suggests a period of consolidation and uncertainty. The downgrade to a Hold rating by MarketsMOJO reflects this cautious outlook. While short-term moving averages offer some support, the broader weekly and monthly indicators warn of potential weakness ahead.

Investors should closely monitor price action around key technical levels and watch for confirmation of trend direction before increasing exposure. Given the stock’s underperformance relative to the Sensex over multiple timeframes, a selective approach is advisable, with consideration given to peer comparisons and sector dynamics.

In summary, Wipro currently presents a mixed technical picture that warrants prudence. The stock’s sideways momentum and modest daily gains do not yet signal a clear breakout, and investors should remain vigilant for further developments in both technical indicators and fundamental catalysts.

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