Wipro hits 52-week high: Brokerages advice how to trade it

There has been a lot of focus on the IT stocks and within the IT pack Wipro has in focus after being added to the Nifty.

The stock touched a 52-week high (Rs 475) on Thursday. At 14:41 hrs Wipro was at Rs 471.65, up Rs 0.25, or 0.05 percent on the BSE.

The country's third largest software services provider Wipro will replace Reliance Infrastructure in Nifty with effect from September 27. Wipro was excluded from the Nifty on April 1 due to demerger of non-IT business into a separate company Wipro Enterprises.

With this, there will be four IT companies in Nifty 50.

Here is what brokerages are making of the stock:

Citi
Rating: BUY
Target: Raised to Rs 535 from Rs 440.
Rationale: The company remains a turnaround story with higher confidence. Q2 guidance on revenue growth is a positive

Jefferies
Rating: HOLD
Target: 505
Rationale: Wipro has significant exposure to investment banking clients, telecom equipment vendors & R&D business. Growth at Wipro will continue to trail peers. It is not a preferred place to be in.

HSBC
Rating: NEUTRAL
Target: Raised to Rs 490 from Rs 440
Rationale: The company’s deal momentum has increased.