
Shares of Wipro Ltd zoomed to their fresh 52-week high in early deals on Thursday. The IT stock, which is trading above the Rs 300 mark for the fourth session, rose marginally to a high of Rs 313.10 against the previous close of Rs 309 on BSE. Market cap of the firm rose to Rs 3.26 lakh crore. Total 2.40 lakh shares of the firm changed hands amounting to a turnover of Rs 7.47 crore on BSE.
Brokerage Investec has reiterated its sell call with a target of Rs 290. The brokerage expects an improved capital allocation strategy and enhanced shareholder payouts from the company.
Considering that Wipro holds a significant cash reserve of $6.1 billion, Investec believes that the company’s new capital allocation policy is likely to align with industry peers.
Investec said while the stock may face limited downside from its current levels, the emphasis remains on the potential benefits of the revised policy framework.
HSBC has upgraded Wipro to hold with a price target of Rs 263.
Prashanth Tapse, senior VP, Research Analyst at Mehta Equities said, "Technical parameters are favouring more movement and any close above Rs 307 level would take the stock into a new zone of Rs 320-360 range in the medium term. Long term outlook remains very optimistic, with a strong deal pipeline we continue to remain positive and recommend long term investors to accumulate on any positive dip with a medium term target of Rs 332."
Hardik Matalia, Derivative Analyst, Choice Broking said, "Holding above the critical Rs 300 level will be essential for Wipro to sustain its upward trajectory and target higher levels. Traders are advised to adopt a buy-on-dips strategy as long as Wipro holds above the crucial support level of Rs 275. This approach enables capitalizing on potential corrections while keeping risk effectively managed."
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, "Wipro emerges as a compelling buy above Rs 300, with potential upside targets of Rs 325 and Rs 335. However, caution is advised if the stock slips below Rs 290, which could invalidate the bullish outlook."
In terms of technicals, the relative strength index (RSI) of Wipro stands at 71.3, signaling the stock is overbought on charts. On a year-to-date basis, the Wipro stock has gained 31.03% and risen 48.14% in a year. Wipro shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates the momentum is bullish both in long and short term.