Wipro's 7.4% Intraday Plunge: A Volatile Start to 2026

Summary
• Wipro (WIT) gaps down 7.4% intraday to $2.75, its lowest since December 12, 2025
• Q3 2026 earnings miss expectations with EPS of $0.03 vs. $0.04 consensus
• Large deal bookings decline 8.4% YoY to $871M, signaling decelerating momentum
• Operating cash flow surges 25.7% QoQ but net income drops 7% YoY

Wipro’s sharp selloff reflects investor disappointment over earnings and booking trends. Despite a 17.6% operating margin expansion, weak top-line growth and muted deal activity triggered a liquidity-driven rout. The stock’s 7.4% drop underscores market skepticism about AI-driven transformation translating into near-term revenue gains.

Earnings Miss and Booking Weakness Trigger Sell-Off
Wipro’s 7.4% intraday plunge stems from a combination of earnings underperformance and declining large deal bookings. The company reported Q3 2026 EPS of $0.03, missing the $0.04 consensus, while non-GAAP constant currency IT services revenue grew only 1.4% QoQ. Large deal bookings fell 8.4% YoY to $871M, reflecting reduced client spending in a cautious macro environment. CEO Srini Pallia’s emphasis on AI adoption as a long-term differentiator failed to offset near-term revenue concerns, triggering profit-taking and short-covering in a low-volume session.

Options Playbook: Capitalizing on Volatility and Liquidity
• 200-day average: 2.8215 (above) • RSI: 54.69 (neutral) • MACD: 0.0371 (bullish) • Bollinger Bands: 2.7927–3.0433 (current price at lower band)

Technical indicators suggest a short-term bearish bias amid a long-term range-bound setup. Key support levels at $2.73 (intraday low) and $2.55 (52W low) are critical for trend continuation. The 54.90% leverage ratio on the WIT20260220P2.5 put option highlights its potential for aggressive short-term gains. Two top options:

• WIT20260220P2.5 (Put): Strike $2.5, Expiry 2026-02-20, IV 43.61%, Leverage 54.90%, Delta -0.217, Theta -0.000786, Gamma 0.782, Turnover $10. High leverage and moderate delta position this as a high-reward bearish play. Projected 5% downside to $2.61 yields a $0.11 payoff (44% gain).
• WIT20260320C2.5 (Call): Strike $2.5, Expiry 2026-03-20, IV 10.00%, Leverage 11.44%, Delta 0.992, Theta -0.001622, Gamma 0.182, Turnover $1,900. High liquidity and near-1 delta make this a directional bet on a rebound above $2.79. Projected 5% upside to $2.89 yields $0.39 payoff (156% gain).

Action: Aggressive bulls may consider WIT20260320C2.5 into a bounce above $2.79. If $2.73 breaks, WIT20260220P2.5 offers short-side potential.

Backtest Wipro Stock Performance
The backtest of WIT's performance after a -7% intraday plunge from 2022 to the present reveals mixed results. While the ETF has experienced a maximum return of 0.08% during the backtest period, the overall trend has been negative, with returns of -0.11% over 3 days, -0.34% over 10 days, and -0.67% over 30 days. The win rates also indicate a slight edge, with 46.96% of days experiencing a positive return over 3 days, 50.40% over 10 days, and 51.21% over 30 days. However, the maximum return day, on which the ETF achieved its highest return, was on January 16, 2026, which suggests that the ETF may not have fully recovered from the intraday plunge even a year later.

Immediate Action: Watch $2.73 Support and Options Volatility
Wipro’s 7.4% drop reflects near-term earnings concerns but aligns with a long-term range-bound pattern. Key levels to monitor include $2.73 (intraday low) and $2.55 (52W low). The WIT20260220P2.5 put option offers high leverage for a bearish scenario, while the WIT20260320C2.5 call provides upside exposure. Sector leader Accenture (ACN) fell 0.16% intraday, signaling IT Services sector caution. Investors should prioritize liquidity and volatility metrics in options trading. Watch for a breakdown below $2.73 or a rebound above $2.83 to confirm trend direction.