Long-term investors can buy the shares of Wipro (₹571.40) at current levels. The recent rise above ₹500 confirms a cup and handle bullish pattern on the chart. The neckline support of this pattern is coming around ₹515. The time taken to form this pattern has been more than two years. So, that makes the pattern very strong. So a fall below ₹515 might be difficult. Moving average cross overs on the weekly and the monthly chart strengthens the bullish case.
Wipro share price can rise to ₹730-₹750 first. This will be the target level of the cup and handle pattern. From a multi-year perspective, there is room to rise beyond ₹750. Wipro has potential to target ₹830-₹850 over the long term. This rise will take a minimum of three years.
Long-term investors can buy now a ₹571. Accumulate on dips at ₹530. Keep the stop-loss at ₹410. Trail the stop-loss up to ₹620 as soon as the stock goes up to ₹710. Revise the stop-loss further up to ₹730 when the price touches ₹790. Exit the shares at ₹830. As mentioned above, this rally will take a minimum of three years. So, investors have to wait patiently. The bullish view will go wrong only if Wipro declines below ₹440. That looks unlikely at the moment.
