Wipro - Something Brewing!

Wipro is seeing a strong downside and this is quite strange compared to its peers. Though TCS has fallen too, the fall in Infosys or Satyam has not been this harsh as what it has been to Wipro. The stock just about covered the entire loss that it incurred in April this year. However the recent decline considering that it is yet to reach the movement enjoyed its peers has raised some doubts.

• No change in the signal to 'buy' for Wipro from the MACD chart. The column bars are still increasing.
• RSI is in the mid zone and no signal coming from this chart either.
• The volume chart from Accumulation Distribution is probably the other place apart from MACD which suggest that there is still some strength in the downside.
• A key point to note is that the levels at which the price is currently is a place where it has a strong support zone. Most of August and September this year, the stock has been hovering at this price.
  

All of this are suggesting that the chart for Wipro is not in a comfortable zone for investors who have just bought the stock. One could expect some languishing of the stock at these levels. Fresh exposure in this stock would come in at Rs. 520 levels only unless there is a strong reversal in the chart formation.