Can IT Sustain? WIPRO – At the Edge of a Trendline

The IT sector has come under pressure recently, in line with global cues. A Trump-related tariff scare has sparked a shift in investor risk appetite, pulling down major indices, particularly those with technology exposure. The NASDAQ’s recent 9% correction in week has mirrored the weakness in Indian IT, where the index is down over 27% in last few weeks from its highs. This correlation underlines the growing sensitivity of Indian IT stocks to global macro events.

JPMorgan expects growth in the Indian IT space to remain muted in FY26. They note that large-cap players are likely to see limited upside, as clients continue to defer spending decisions and longer deal cycles persist.

For traders, the real question is whether the price action is aligned with this improving narrative.

Interestingly, Wipro’s Q3 FY25 results showed a YoY net profit growth of 24.5%, with EBITDA margins improving on a sequential basis. Management commentary was relatively optimistic, particularly around BFSI and cloud verticals. While the fundamental trend is stable, the upcoming Q4 results on April 16 will be critical in determining whether the trend sustains or reverses.

On the weekly chart, Wipro is testing a long-term trendline that extends from the March 2020 lows. Volume has tapered off as the stock approached this zone, which often indicates selling exhaustion. The stock is also hugging the lower Bollinger Band, pointing to a potential oversold condition.

The daily chart shows a zone of confluence around the ₹200-210 range. This includes the 0.236 Fibonacci retracement level, the Ichimoku base cloud, and an RSI near 40, which has historically provided support. Stochastic momentum indicators also suggest the possibility of a short-term bounce.

However, while the indicators are aligning, a price confirmation in the form of a strong bullish candle or a gap-up with volume is essential before taking a long trade.

If Wipro gives a bullish confirmation above ₹260, a short-term rally toward ₹280-285 is likely. On the flip side, a breakdown below ₹210 with strong volume would negate the reversal thesis and point toward further downside. In a sideways scenario where price remains trapped between ₹200-₹210, traders may prefer to wait for clarity.

Conclusion: Watch for Reversal but with a Trigger

Wipro is trading near a crucial technical support zone, with early signs of a base formation. However, in the absence of a strong price trigger, it is premature to take a directional bet. A confirmed bounce backed by volume can offer a swing opportunity over the next 1-2 weeks. Until then, the approach should be cautious, with a close eye on both global tech sentiment and pre-result positioning