- Summary:
- Wipro share price spiked on Friday as Tata Consulting Services' forecast-beating earnings triggered a widespread market rally.
Wipro share price soared on Friday, gaining 5.3 percent in the intraday session to hit Rs 564.80, the highest level since April 2022. The performance mirrored that of the wider IT market, epitomized by Nifty IT Index’s intraday gains of 4.9 percent. The industry’s performance was fueled by Tata Consultancy Services (TCS) rally, which came as a result of the company’s better-than-expected quarterly earnings release on Friday.
Wipro has registered an upbeat market performance since the beginning of June. It gained 17.4 percent in June and has risen by 8.8 percent so far in July. Furthermore, WIPRO is on a four-week winning streak as of this writing.
The forecast-beating performance by TCS has created a bullish sentiment in IT stocks, which are now likely to defy analysts’ expectations in the stock market. Furthermore, the impressive performance by IT stocks also extends to Wall Street, where tech companies have been on the uptrend this week. The resulting sentiment is likely to result in FOMO, which could propel IT stocks higher.
For Wipro share price, the next week is likely to see it extend its current rally ahead of its earnings release scheduled for July 19. The company posted a year-on-year profit decline of 8 percent in the last quarter, but is expected to report a 4 percent growth in its forthcoming release.
Technical analysis
The Wipro share price is on an upside momentum, with the pivot at Rs 556.00. The upward movement will likely meet the first resistance at 565.50, but extended control by the sellers could strengthen the momentum for further gains to test 570.50. Conversely, the sellers are likely to take control if the action breaks below 556.00. In that case, the first support could be established at 550.30, but extended control by the sellers could breach that mark. That could result in the invalidation of the upside narrative and the strengthening of the downside momentum to potentially send the share price lower to test 545.00.
