In the recent stock market sell-off following the outbreak of the Russo-Ukraine War, a large number of stocks have seen a sharp correction. Shares of Wipro and Tech Mahindra are one of them. These two stocks are trading near their 52-week lows which may attract situational investors looking for quality stocks available at attractive valuations. wipro share price today 411.80 each, down from its 52-week low of . is close to 402.05 on NSE while Tech Mahindra share price is today 983, less than 40 off its 52-week low 943.70.
According to stock market experts, both Tech Mahindra And Wipro shares are trading on significant support and further downside looks limited. However, he suggested investors to buy shares of Wipro and TechM in a calibrated manner as speculations about a slowdown in the US economy are high and this is expected to put global markets under pressure in the short to medium term.
“Tech Mahindra and Wipro have corrected significantly and are trading at 52-week lows, although they are close to their key support levels, so downside looks limited from here. Tech Mahindra share price is trading at 200-week lows. trading on SMA which is from 950 900 demand zone Wipro is also trading near key psychological support 400 while 380 is the 200-week SMA. The long-term outlook of Indian IT stocks is still positive and such a healthy correction is a good opportunity to add them to the portfolio, though short-term volatility cannot be ruled out,” said Santosh Meena, Head of Research, Swastika Investmart.
Suggesting positional stock market investors to keep an eye on the slowdown in the US economy, Sumeet Bagdia, Executive Director, Choice Broking, said, “Both Wipro and TechM stocks are available at attractive valuations, but there is a possibility of recession in the US. Due to the .economy, global equity markets may remain under pressure in the short to medium term. Hence, the upside in most of the stocks is expected to remain limited and bears are expected to remain dominant in the short to medium term. Hence, bulls should buy Wipro. and TechM shares in a calibrated manner while maintaining a buy on downside strategy in these two stocks.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.