Published on: December 26, 2023

Wipro, a prominent player in the IT industry, has recently made headlines due to its legal tussle with its former senior executive, Mr. Haque. The company filed a complaint against him for allegedly violating the non-compete clause in his employment contract by joining rival firm Cognizant. This development has cast a shadow on Wipro, causing concerns among investors and impacting the stock price.
Despite the negative news, technical analysis of Wipro’s stock charts paints a different picture. According to the Wyckoff Theory, the market moves through accumulation and distribution phases. The current chart patterns for Wipro indicate that the stock is in an accumulation phase, suggesting a potential bull case scenario.
During an accumulation phase, smart money or institutional investors quietly accumulate shares, often leading to a solid upward move once the accumulation is complete. This implies that while the negative news may influence short-term sentiment, the underlying strength in the charts suggests a favourable setup.
Wipro Weekly Chart

Source: TradePoint
On the weekly chart of Wipro, a clear Wyckoff accumulation phase is observable.
In this case, Wipro’s accumulation phase signals a transition from a bearish to a potentially bullish scenario. The accumulation phase is subdivided into four key stages – A, B, C and D.
Wipro has entered Phase D of the Wyckoff accumulation phase, which is considered a pivotal stage, signalling the beginning of a potential uptrend.
Though Wipro has been the slow mover, the Wyckoff structure indicates the bottoming phase supported by an uptick in volumes.
The volumes during the spring signal the bottoming pattern. Since then, the higher volumes have been a signal of accumulation, and as the stock entered Phase D, an uptick in volumes confirms that smart money is moving into the stock.
While the legal dispute with Mr. Haque has undoubtedly created a negative buzz around Wipro, the charts present a contrasting perspective. The Wyckoff accumulation phase suggests that institutional investors may see value in Wipro despite the short-term challenges.
Investors should exercise caution and conduct thorough research before making any decisions. This article does not indicate as recommendation.