WiproWe recommend a sell in Wipro stock from a short-term trading horizon. It is apparent from the charts of Wipro that it has been on a long-term downtrend from its February 2007 peak of Rs 690. Since then the stock has been forming lower peaks and lower troughs. In September, this downtrend accelerated and the stock witnessed a steep decline.
However, the stock found support at Rs 181 in late October and bounced back. We notice the formation of a descending triangle pattern spanning over the past two months, with the lower horizontal line at Rs 220. This pattern is a bearish continuation pattern.
On January 12, the stock plummeted by 9 per cent, accompanied with heavy volume. The stock is currently testing the lower horizontal line. The weekly relative strength index (RSI) features in the bearish zone.
We are bearish on the stock from a short-term perspective. We anticipate the stock to penetrate its lower horizontal line and decline until it hits our price target of Rs 204. Traders with short-term perspective can sell the stock, while maintaining a stop-loss at Rs 238.
Infosys Technologies Q3 consolidated net profit rose 33.3% to Rs 1,641 crore for the quarter ended December 31, 2008 as against Rs 1,231 crore in the corresponding quarter a year ago
No positive surprises were expected from Infosys and it was expected to miss its reported dollar guidance
The outlook on the industry remains weak.