-------- Forwarded Message --------
Subject: Wipro: Q1 Result Largely In Line/Above Estimates With
Resonable Guidance--May Fly To 680-710 Only Abv 600-622 In Nr. Term
Date: Fri, 24 Jul 2015 08:49:56 +0530
From: Asis Ghosh <asis...@gmail.com>
Reply-To: asis...@gmail.com
To: undisclosed-recipients:;
Technically, for Wipro (CMP:589) immediate support zone is 580-568 &
562-553*. Sustaining below 553, it may fall to 548-541-536-530-512* &
504-498-484-471-465 zone in the worst bear case scenario.
On the upside, sustaining above 580, Wipro could target 592-600-622
immediately and further sustaining above that, it may further scale to
640-678 & 710 in the short to medium term. In the long term, only
consecutive closing above 678-710 area, it may target 825-850 under
bullish market conditions.
In short, sustaining above 600-622, Wipro may fly to 680-710 or
consecutive closing below 562-540, it could crashed to 500-484 zone in
the near future (as Q2FY16 guidance given by the management is below
Nascom's industry average growth).
Bottom Line: Technical Trading Levels (Positional)
SL</>5 FROM SLR
Wipro CMP 589
T1 T2 T3 T4 T5 T6 T7 SLR
Strong > 568 580 592 600* 622* 640 664
678-710 <560
Weak < 560 553-548 541-536* 530-512 504
498 484 471-465 >568
Q1 result of Wipro published yesterday after market hours is largely in
line/slightly above street estimates.But concern may be on soft guidance
for Q2FY16 given by the management, which may be dubbed as below
industry (Nascom) average growth. Purely on this factor, GS & CLSA
downgraded Wipro to 510 level today as they sees pricing & margin
pressure continues in the near term.
But management of Wipro is very much optimistic about the future and
hinted better times ahead. Its US arms makes around 18% of its revenue
from energy (Oil & Gas) sector. It sees calmer & less volatile global
oil prices in the days ahead to revive spending on IT outsourcing by its
energy & utility clients. With Crude oil price nearly bottoming out,
$48-44 might be a good demand zone (considering the overall
demand/supply dynamics viability of this sector), Wipro might be proved
right.
Looking ahead, Wipro's investments & acquisitions of start ups &
innovations, automation & digital technology (artificial intelligence)
and big data management solutions may be the game changer to improve its
appeal in the market. With stable situation in EU and improved North
America, we may see better energy & telecom revenue growth than market
expectation in the next couple of quarters.
"Digital India" theme and GST roll out all over India (software
contract) may be helpful for all big IT companies and Wipro might be one
of them in the days ahead.
As par BG metrics, current median valuation of Wipro may be around 700
and its projected fair valuations might be around 725-765-835 under the
current market trends (FY:16-18).
SCRIP EPS(TTM) BV(Act) P/E(AVG) LONG TERM SHORT TERM MEDIAN
VALUE 200-DEMA 10-DEMA
WIPRO 35.04 130.13 24.22 696.37 696.67 696.52 571.41 571.89
WIPRO 37.51 153.5 24.22 720.50 720.80 720.65 571.41 571.89
WIPRO 41.67 181.1 24.22 759.40 759.72 759.56 571.41 571.89
WIPRO 50.05 213.75 24.22 832.27 832.62 832.44 571.41 571.89
<http://1.bp.blogspot.com/-rYcbDSqBZAY/VbGsBRgP1bI/AAAAAAAADf0/f-Bq20__hvY/s1600/WIPRO-23-07-2015.png>
<http://1.bp.blogspot.com/-1rIOV9C6CBI/VbGsEqBL9xI/AAAAAAAADgE/dLkuLLo4904/s1600/WIPRO-WK-23-07-2015.png>
<http://3.bp.blogspot.com/-JH1FTRRHFB4/VbGsG9EcARI/AAAAAAAADgM/GOj7b-2ByRE/s1600/WIPRO-TL-23-07-2015.png>
<http://3.bp.blogspot.com/-DGg7QPyOz_Q/VbGsI5UN5qI/AAAAAAAADgU/4DDciaM_bAE/s1600/WIPRO-PATTERN-23-07-2015.png>
<http://2.bp.blogspot.com/-Z_Ip6VFBaV0/VbGsLeQy2mI/AAAAAAAADgc/gNpHSK3cbpI/s1600/WIPRO-TL-MT-23-07-2015.png>
<http://3.bp.blogspot.com/-aQHBx2EARXE/VbGsDC_PRTI/AAAAAAAADf8/nNF7WdsTMYQ/s1600/WIPRO-FIBB-23-07-2015.png>
--
Thanks & Regards,
Asis Ghosh
(asisghosh.blogspot.com)
NCFM-TA Certified
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