Wipro hits near 19-year high; technicals suggest more upside

Shares of software services provider Wipro gained as much as 1.95 per cent to Rs 353.25, their highest since February 23, 2000.

The stock broke above resistance at Rs 348.22, the 61.8 per cent Fibonacci projection level of the uptrend from June 6, 2018 low to September 24, 2018 high (wave 1).

The breakout suggests the stock may rise up to the next resistance at Rs 360.56 – the 76.4 per cent projection level – in a couple of days.

The stock’s 5-day average volume is 91.5 per cent higher than its 30-day average, suggesting volume is supporting price at higher levels.

Momentum indicator moving average convergence divergence, or MACD is positive and above its signal line.

The stock jumped 7.58 per cent in the past one month as of Tuesday’s close, while the broader NSE index up 1.57 per cent.

Wipro last Friday reported a 31.83 per cent year-on-year rise in profit at Rs 2,544.50 crore for the quarter ended December 31.

The board also recommended issuing bonus equity shares in the proportion of 1:3, which is one bonus equity share of Rs 2 each for every three fully paid-up equity shares held.

Around 10:20 am on Wednesday, the scrip traded at Rs 352.55, up 1.76 per cent on BSE.