Stock Market Forecast: Wipro share price may rise up to 30 pc in 3 months, predict Dalal Street experts

Shares to buy: On account of strong fundamentals and technicals, the Wipro share price is expected to gain near 20 per cent from the current levels, however, if a stock market investor does 'some smart move' and watches Sensex, Nifty and other Indian indices closely, he or she can make gains of around 25 to 30 per cent gains on their market investment say share market experts. They say Wipro counter is at Rs 280/stock levels currently and is poised to show Rs 340/stock soon.  

Giving further details about the fundamentals of the Wipro stock Niharika Ojha, Research Analyst at Narnolia Financial Advisors said, "FY19 was restructuring year for Wipro where the company went through a lot of changes all through the year. The company restructured its segments for better performance whereas exited some businesses (India PSU, Data center business) which was unnecessarily dragging the profitability. This resulted in revenue growth of 7.5 per cent YoY and margin expansion of 180 bps for FY19. Going ahead, revenue performance in FY20 looks better than FY19 on the back of order booking in 4QFY19 which is close to double-digit growth."

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On her suggestion to the stock market investors in regard to Wipro shares, Niharika Ojha of Narnolia Financial Advisors said, "In short-term perspective, the Wirpo stocks are showing an upside potential for around 12 per cent gains and it can show Rs 314/stock levels during this period."

However, Ravi Menon, Analyst at Elara Securities said that the Wipro shares would touch Rs 340/stock levels in short-term to mid-term perspective i.e. one month to three months as the IT stock's fundamentals are very strong. "While Wipro’s revenue growth of 1.4 per cent Quarter-on-Quarter in US dollar growth was 130bp higher than our estimates, we found QoQ guidance of -1 per cent to 1 per cent disappointing. But we believe this is due to transient client issues rather than structural portfolio as Wipro’s new service lines of digital operations & platforms and data, analytics & AI have grown at 25.3% YoY and 13.2% YoY in constant currency (CC) terms, respectively. Management says digital has grown 32.5% YoY, indicating a services portfolio that is fairly competitive."

On what would be his suggestion to the stock market investors Ravi of Elara Securities said, "The fundamentals of the Wipro counter suggests an upside swing for near 21 per cent and the counter may show Rs 340/stock levels in short-term to mid-term."

However, SEBI registered technical equity analyst Simi Bhaumik told Zee Business online, "The Wipro stock is overall bullish and if it sustains above 280 levels then it can show Rs 300 to Rs 310 levels in less than a week. However, if it dips below 275 levels then the counter may show Rs 260/stock levels too. So, a stock market investor should buy Wipro shares either it sustains above Rs 280 or at Rs 260 if it breaches the 275 support." She advised stock market investors to maintain stop loss below Rs 260 if they take a buy position in Wipro counter.

So, a share market investor can either buy the counter at current levels of Rs 280/stock levels and do the averaging at Rs 260/stock levels if it goes below Rs 275 levels or they can wait for a few time and see whether Wipro share price sustain above Rs 280 levels or it breaches the Rs 275 levels and reaches Rs 260 per stock levels, say experts. However, in both cases, an investor can expect around 25 to 30 per cent gains in near three months.