- Summary:
- Wipro share price rose for the fifth successive session on Tuesday, with the Fed's impending interest rate cuts likely to sustain the run.
Wipro share price extended its upward streak to the fifth successive session on Tuesday, recording its best run since February, amid positive sentiment around IT stocks. Wipro (NSE: WIPRO) was up by 0.9 percent at the time of writing, hitting a three-week high of Rs 527.60 in the process before easing down to Rs 524.65.
Indian IT stocks have been on a steady rise in the three days, on expectations that Federal Reserve Chairman Jerome Powell will provide dovish guidance on interest rate cuts during his speech at Jackson Hole on Friday. The Nifty IT Index rose to a record-high 42,746 points on Tuesday, with successive gains stretching back to August 9th on the daily chart.
Net purchases by Foreign Portfolio Investors in Indian IT stocks rose to $1.4 billion in July, underlining the significance of US interest rate sentiment on the current market momentum. Notably, Wipro’s share price upside momentum comes despite the company’s lower-than-expected earnings for the quarter ended June. The stock is 10.9 percent this year, and 7.2 percent this week.
Momentum indicators
On the 4-hour chart shown below, the price is currently above the Volume Weighted Moving Average (VWMA), which stands at Rs 502.72 as of this writing. This signals that the upward momentum will likely continue, and the RSI at 66 lends support to that view.
Support and resistance levels
Wipro share price will likely stay on the upside if the buyers stay in control above the 520.20 pivot mark. With the resulting bullish momentum, the first resistance will likely be at 527.30. However, if the bulls extend their control, they will break above that mark and potentially build the momentum to head to 535.70. Conversely, moving below 520.20 will favour the sellers to take control of the market. In that case, look for the first support at 510.45. However, extended control by the sellers will result in a stronger downside momentum to breach that support and potentially take the share price lower to test the second support at 500.00.
