"We recommend selling Wipro for the downside target of Rs 245, and keeping a stop loss above Rs 280," says Vinay Rajani, Technical Analyst, PCG Desk at HDFC Securities.
Despite being a part of the IT sector which is clearly outperforming in the current market scenario, Wipro has failed to perform and is weakening further on the charts.
On the weekly charts, the stock has confirmed a breakdown from the bearish head and shoulder pattern. The stock is currently trading below its 50, 100 and 200-DMA, indicating a bearish trend on all time frames.
The stock price has been forming lower tops and lower bottoms on the daily charts. We recommend selling Wipro for the downside target of Rs 245, and keeping a stop loss above Rs 280.Disclaimer: The author is Technical Analyst, PCG Desk, HDFC Securities. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.