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The shares of Wirpo advanced almost 3 per cent accompanied by above average volume on Friday, breaking above a key medium-term resistance level of ₹340. Moreover, the stock surged 5.5 per cent with good volume last week, decisively breaking above a vital long-term resistance level of ₹330. This rally gives investors with a medium-term perspective an opportunity to buy the stock at current levels.
The stock has been in a long-term uptrend since taking support at ₹205 in November 2016. Medium as well as short-term trends are also up for the stock. It trades well above its 50- and 200-day moving averages. There has been an increase in daily volume over the last one week. The daily relative strength index has entered the bullish zone from the neutral region.
Similarly, the weekly RSI has entered the bullish zone from the neutral region, backing the continuing bullish momentum. Moreover, the daily as well as weekly price rate of change indicators hovers in the positive territory, implying buying interest. Overall, the medium-term outlook is bullish for Wipro. With the bullish momentum, the stock has the potential to trend up and reach the price targets of ₹370 and ₹380 over the medium term with a minor pause at ₹360. Investors with a medium-term perspective can buy the stock with a stop-loss at ₹328 levels.
(This recommendation is based on technical analysis. There is a risk of loss in trading)
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