Wipro (WIT) Surges 7.16% on Bullish Technicals and Strategic Buy Signals: Is This the Start of a Breakout?

Summary
• Wipro (WIT) surges 7.16% to $3.065, hitting a 52-week high of $3.08
• Intraday volatility narrows to $2.89–$3.08 range amid strong volume
• Technical indicators signal short-term bullish momentum with RSI at 65.9 and MACD crossing above signal line

Wipro’s dramatic intraday rally on December 19, 2025, has ignited investor interest as the stock breaks through key resistance levels. With a 7.16% surge to $3.065, the move aligns with bullish technical patterns and strategic buy signals from moving averages. Traders are now scrutinizing whether this breakout signals a sustained upward trend or a short-lived spike.

Bullish Technicals and Strategic Buy Signals Drive Wipro’s Rally
Wipro’s 7.16% intraday surge is fueled by a confluence of technical catalysts. The stock pierced above its 200-day moving average ($2.837) and closed near the upper Bollinger Band ($2.917), signaling strong short-term momentum. A bullish MACD crossover (0.043 vs. 0.040 signal line) and RSI at 65.9 (approaching overbought territory) confirm institutional buying pressure. Additionally, the stock’s 30-day moving average ($2.734) and 100-day average ($2.719) provide a supportive baseline, suggesting a potential continuation of the upward trend.

Information Technology Services Sector Gains Momentum as IBM Leads with 0.82% Rally
The Information Technology Services sector, led by IBM’s 0.82% intraday gain, has seen renewed interest amid AI adoption tailwinds. While Wipro’s 7.16% surge outpaces sector averages, peers like Infosys and Tata Consultancy Services remain range-bound. This divergence highlights Wipro’s unique technical setup and strategic positioning in AI-driven IT services, as underscored by its recent partnership announcements and strong earnings momentum.

Capitalizing on Wipro’s Breakout: ETFs and Options for Aggressive Bulls
• 200-day MA: $2.837 (below current price)
• RSI: 65.9 (approaching overbought)
• MACD: 0.043 (bullish crossover)
• Bollinger Bands: $2.644–$2.917 (current price near upper band)

Wipro’s breakout above key technical levels suggests a high-probability continuation trade. Key support at $2.69 (accumulation zone) and resistance at $3.08 (intraday high) define the immediate trading range. For leveraged exposure, consider XLF (XLF) or TECH (TECH), which track the sector’s AI-driven growth. Short-term options offer amplified potential:

1. WIT20260618C2.5 (Call Option)
- Strike: $2.50 | Expiry: 2026-06-18 | IV: 29.63% | Delta: 0.84 | Theta: -0.000218 | Gamma: 0.342 | Turnover: 680
- IV (29.63%): Reflects moderate volatility expectations
- Delta (0.84): High sensitivity to price moves
- Gamma (0.342): Strong acceleration potential
- Turnover (680): High liquidity ensures easy entry/exit
- Payoff at 5% upside: $0.53 (max(0, 3.216 - 2.50))
- This call option offers leveraged exposure (5.11% leverage ratio) with strong delta and gamma, ideal for a bullish continuation.

2. WIT20260618P2.5 (Put Option)
- Strike: $2.50 | Expiry: 2026-06-18 | IV: 62.64% | Delta: -0.24 | Theta: -0.001108 | Gamma: 0.229 | Turnover: 0
- IV (62.64%): High volatility premium
- Delta (-0.24): Moderate downside protection
- Theta (-0.001108): Aggressive time decay
- Turnover (0): Low liquidity limits utility
- Payoff at 5% upside: $0.00 (max(0, 2.50 - 3.216))
- While the put offers volatility hedging, its low turnover and negative delta make it less optimal for current conditions.

Aggressive bulls should prioritize WIT20260618C2.5 for its high delta and gamma, aligning with Wipro’s breakout trajectory. Monitor the $3.08 intraday high as a critical retest level.

Backtest Wipro Stock Performance
The backtest of the iPath S&P 500 VIX Short-Term Futures (WIT) ETF after a 7% intraday surge from 2022 to now reveals mixed results. While the 3-Day, 10-Day, and 30-Day win rates show a slight edge with 49.55%, 50.23%, and 51.58% respectively, the overall returns over these periods are negative, with a maximum return of -0.13% during the backtest period. This suggests that while WIT has a higher probability of short-term gains, the negative returns indicate a challenging environment for long-term investors.

Act Now: Wipro’s Breakout Could Signal a New Bull Phase
Wipro’s 7.16% surge on strong technicals and strategic buy signals suggests a potential multi-week bullish phase. The stock’s proximity to the 52-week high ($3.79) and its alignment with AI-driven IT sector tailwinds (e.g., IBM’s 0.82% rally) position it as a key play. Traders should watch for a sustained close above $3.08 to confirm the breakout, while the $2.69 support level remains critical for downside protection. For immediate action, the WIT20260618C2.5 call option offers leveraged exposure to capitalize on this momentum. If $3.08 holds, Wipro could retest its 52-week high within weeks.