Technical Analysis: Wipro, Karnataka Bank and L&T Finance

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I have shares of Wipro at an average price of ₹404. What is the outlook? I am holding this stock for the last four years. Can I exit the stock at the current level?

Elanchezhian

Wipro (₹462.35): The long-term picture is looking positive on the charts for Wipro. The downtrend, that was in place since 2021, has ended and a fresh uptrend is in place at the moment. Strong support is in the ₹415-400 region. Below that ₹385 is a very strong support. A dip to ₹415-400 in the short term cannot be ruled out. But the chances are high for the stock to reverse higher again from around ₹400. That rise will have the potential to take Wipro share price up to ₹600 initially. A break above ₹600 will see the upside extending up to ₹700-750.

But this rally will take time, may be minimum of one year. If you can wait, then hold the stock. Accumulate at ₹420. Keep a stop-loss at ₹360. Trail the stop-loss up to ₹510 as soon as the stock moves up to ₹560. Move the stop-loss further up to ₹610 when the price touches ₹700. Exit at ₹750. You can also consider exiting now and booking some profit. Once again buy the stock at ₹420 and follow the strategy mentioned above.

I have shares of Karnataka Bank. My average price is ₹185. Can I continue to hold for another six months or exit now? What are the short- and long-term targets for the stock? Kindly advise.

Samarth P M

Karnataka Bank (₹223.45): The trend is up and strong. Within that, the stock has been consolidating for some time. Considering the prolonged sideways move for about 10 years, there could be more room left on the upside for the stock to rise from here. However, in the short term, there are good chances for the Karnataka Bank share price to fall to ₹190-185. But a break below ₹185 might be difficult. So, we can expect a fresh leg of rally from around ₹185.

That leg of rally will have the potential to breach the resistance at ₹260. Such a break will open the doors for Karnataka Bank share price to target ₹360 on the upside over the long term. So, from a long-term perspective, you can continue to hold the stock. Keep a stop-loss at ₹160. Trail the stop-loss up to ₹240 as soon as the stock price goes up to ₹290. Move the stop-loss further up to ₹310 when the price touches ₹340. Exit the stock at ₹360.

I bought L&T Finance at ₹165. What is the short-term outlook for this stock?

Prabhakar

L&T Finance (₹160.35): The broader trend is up. Supports are at ₹152 and ₹143. The uptrend will come under threat only if L&T Finance share price declines below ₹143. In the short term, the price can gradually dip to ₹152 or ₹143. But a fall below ₹143 could be less likely. Resistance is around ₹180. The stock has to breach this hurdle to gain fresh bullish momentum.

Such a break can take L&T Finance share price up to ₹220-250 over the medium term. Keep a stop-loss at ₹138 and hold the stock. Revise the stop-loss up to ₹170 as soon as the stock moves up to ₹195. Move the stop-loss further up to ₹190 when the price touches ₹205. Exit the stock at ₹220.

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