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As the market is trading at relatively higher levels, it might be difficult to find stocks that are at their lows, but worth having a look at for the long term. One such large-cap fulfilling all these criteria that is looking amazing on the charts is Wipro Limited (NS:). The entire IT space was going all guns blazing in the previous session and Wipro was one that stole the show.
It is a large-cap IT company with a market capitalization of INR 2,26,278 crore and currently trades at a TTM P/E ratio of 19.41, compared to the sector’s average of 28.09. Hence, from the valuation perspective, the stock can definitely be explored for a long-term portfolio, especially for those looking for less volatile and more stable companies.
Image Description: Weekly chart of Wipro with volume bars at the bottom
Image Source: Investing.com
Secondly, the stock also gave a confirmation of an uptrend on the weekly charts yesterday, as it surged 4.2% to INR 434.1 and broke above the 52-week high resistance of INR 426. This breakout was backed by an expanded volume of 13.81 million shares on the NSE, which was 273% higher than the 10-day average volume of 3.7 million shares.
The stock has come out of a very smooth rounding bottom. This is a base formation pattern and often results in a trend reversal. This base has taken over a year to form, which further increases the probability of the impending reversal. Looking at the chart, the bottom of INR 352 has been confirmed, and before breaking that, the stock will likely rise to INR 530.
Obviously, a large-cap doesn’t go from INR 432 (CMP) to INR 530 in the blink of an eye, just like the pace of rally we are witnessing in the small-cap space. The stock will take its own sweet time.
This analysis is not for short-term trading as this is not the character of the stock, but for those looking for a long-term fundamentally robust stock, available at an attractive valuation and also looking good on the charts, Wipro is a great candidate.
In case you want to connect with me, reach out on Twitter. My handle is – aayushxkhanna
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