Buy Wipro; target of Rs 530: ICICI Direct

The key observation on the price charts of Wipro is that the stock after a significant correction of almost 40% from the March 2015 high of Rs 677 has recently tested its major long term value area around Rs 400. The formation of bullish Hammer like candle on the CMP: Rs 464.00 Buying Range: Rs 450.00-464.00 Target: Rs 530.00 Stop loss: Rs 415.00 Weekly Candlesticks Chart Monthly Candlestick Chart Bullish Hammer like candle in the monthly chart at the major support signaling a potential reversal of trend and 677 The formation of bullish Hammer like candle on the monthly chart in November 2016 around the major support area of Rs 400 highlights that the supply pressure was absorbed at the major value area and accumulation by stronger hands signalling a potential reversal of trend and offers a fresh entry opportunity for short-term investors.

Based on the aforementioned observations, we believe that the stock provides a good entry opportunity with a favourable reward/risk ratio to ride the next up move. We expect the stock to resolve higher and retrace at least 61.8% of the previous decline, thereby providing upsides towards Rs 530 in the short term.