Wipro Ltd has recently announced that it will consider a bonus issue of shares on October 17, 2024. This move has sparked interest among investors, with Wipro’s stock rising by 3% to ₹545.35 in early trading. The last time Wipro issued bonus shares was in 2019, when it distributed one bonus share for every three shares held by shareholders.
Wipro’s Stock Performance
Currently, Wipro shares are trading above their 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages. This upward trend indicates strong market sentiment and suggests potential bullish momentum for the stock.
Market Overview
As of now, Wipro’s market capitalization stands at approximately ₹2.83 lakh crore. In early trading, about 0.60 lakh shares changed hands, amounting to a turnover of ₹5.11 crore on the Bombay Stock Exchange (BSE). The Relative Strength Index (RSI) for Wipro is at 47.6, signaling that the stock is neither overbought nor oversold.
Upcoming Earnings Report
In addition to the bonus announcement, Wipro is set to release its September quarter results on October 17. Analysts are keenly watching for key indicators such as deal total contract value (TCV), pricing scenarios, and growth outlooks in operating margins and the Product & Platform (P&P) business.
Should You Buy or Sell?
Buy Considerations
➔ Bonus Issue: The potential bonus share issuance could attract more investors and increase demand for Wipro shares.➔ Positive Stock Movement: The current upward trend in Wipro’s stock price may indicate a bullish sentiment among investors.➔ Strong Market Position: Wipro has demonstrated resilience with a year-on-year rise in consolidated net profit of 5.21% in Q1, despite a revenue decline.
Sell Considerations
➔ Market Volatility: While the stock is currently performing well, market conditions can change rapidly; investors should be cautious.➔ Earnings Performance: The upcoming earnings report could significantly impact stock performance; any negative surprises may lead to a decline.
Conclusion
Wipro’s consideration of a bonus issue of shares combined with its recent stock performance presents an intriguing opportunity for investors. However, potential buyers should remain vigilant about market conditions and upcoming earnings announcements that could influence stock prices.Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with a financial advisor before making investment decisions.
