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The Wipro share price is currently trading at ₹562, reflecting a daily gain of 1.66%. With a market capitalization of ₹2,94,025 crore, the IT giant remains a prominent player in the Indian stock market. While its recent price movement indicates positive momentum, deeper insights into its financial performance, technical indicators, and industry comparison can provide a clearer picture for investors.
The daily chart of Wipro share price highlights a steady uptrend supported by a breakout from the Bollinger Band’s midline. The price is trading near ₹562, showing resilience after bouncing off a key support zone of ₹536.
The price is approaching the upper band at ₹577, indicating potential bullish momentum.
The midline support near ₹557 acted as a base for the recent bounce.
RSI at 54.69 suggests a neutral to bullish sentiment. It is yet to enter overbought territory, leaving room for further upward movement.
The hourly chart provides a short-term perspective on the Wipro share price:
The stock is trading above the 50-day moving average at ₹561, showing near-term bullishness.
The 100-day moving average at ₹560 acts as immediate support.
Recent price action shows consolidation between ₹561 and ₹567, indicating indecision among traders. A breakout above ₹567 could drive the next leg of the rally.
Wipro has shown steady growth in its operating profit, with an Operating Profit Margin (OPM) of 20% in the most recent quarter. However, challenges like slowing sales growth (8.75% over the past five years) continue to weigh on the company’s long-term outlook.
Quarterly sales stood at ₹22,302 crore, marginally higher than the previous quarter.
Net profit for the same period was ₹3,227 crore, marking a 5% improvement year-on-year.
A dividend yield of 0.18% is on the lower side compared to peers like Infosys and TCS.
Return on Capital Employed (ROCE): 16.9%, lower than sector leaders.
Return on Equity (ROE): 14.3%, indicating average capital efficiency.
Consistent profitability with a stable operating margin.
Increasing focus on emerging technologies like AI and cloud services.
Low sales growth (8.75% over five years) compared to sector peers.
A dividend payout of 12.2% over the last three years reflects limited returns for income-focused investors.
When comparing the Wipro share price and metrics with peers in the IT sector:
Current Price: ₹4,039
P/E Ratio: 30.35
Market Cap: ₹14,61,544 crore
Current Price: ₹1,824
P/E Ratio: 28.11
Market Cap: ₹7,57,665 crore
Current Price: ₹1,820
P/E Ratio: 29.36
Market Cap: ₹4,94,036 crore
Current Price: ₹562
P/E Ratio: 25.04
Market Cap: ₹2,94,025 crore
While Wipro has a lower valuation (P/E ratio) than its larger competitors, this may indicate potential undervaluation, making it an attractive option for value investors.
Immediate resistance is at ₹567. A breakout above this level could lead to a rally toward ₹577 (Bollinger Band upper limit).
A stronger rally may target ₹583, the 52-week high.
Immediate support lies at ₹557 (Bollinger Band midline).
A breakdown below ₹557 could see the stock testing ₹536, the lower support zone.
The IT sector remains sensitive to global economic conditions, particularly the demand for digital transformation services. Factors influencing Wipro share price include:
U.S. Market Conditions: A significant portion of Wipro’s revenue comes from the U.S., where spending on IT services is stabilizing after earlier growth.
Currency Exchange Rates: Depreciation of the Indian rupee against the U.S. dollar often benefits IT companies like Wipro, boosting revenue in INR terms.
AI and Cloud Investments: Wipro’s strategic investments in AI and cloud technologies could help it capture emerging opportunities in digital transformation.
Investor sentiment around the Wipro share price has been mixed:
Positives: A strong focus on profitability and consistent dividends.
Negatives: Slower revenue growth compared to competitors and low dividend yield.
However, with RSI indicating neutrality and technical indicators showing potential for upward movement, traders remain cautiously optimistic.
The Wipro share price reflects a steady recovery, supported by positive momentum and technical strength. While challenges like slow sales growth and lower dividend payouts remain, the company’s focus on emerging technologies and operational efficiency could bolster long-term growth.
From a technical standpoint, a breakout above ₹567 could propel the stock to ₹577 and beyond. Conversely, failure to hold support at ₹557 may lead to further downside. Investors should closely monitor global macroeconomic factors and the company’s quarterly performance to gauge future trends. For long-term investors, Wipro presents a balanced opportunity with its valuation and strategic focus on high-growth segments like AI and cloud services.
