Wipro, Tech Mahindra shares near 52-week low. Right time to accumulate?

In recent stock market sell-off after outbreak of Russia-Ukraine war, a good number of stocks have witnessed heavy corrections. Shares of Wipro and Tech Mahindra are one of them. These two stocks are trading close to its 52-week low that may attract positional investors who are looking for quality stocks available at attractive valuations. Wipro share price today is ₹411.80 apiece, which is close to its 52-week low of ₹402.05 on NSE whereas Tech Mahindra share price today is ₹983, less than ₹40 away from its 52-week low ₹943.70.

According to stock market experts, both Tech Mahindra and Wipro shares are trading at crucial support and further downside looks limited. However, they suggested investors to buy Wipro and TechM shares in a calibrated manner as speculations are high about slowdown in the US economy and it is expected to keep global markets under pressure in short to medium term.

"Tech Mahindra and Wipro have corrected significantly and are trading at 52-week lows however they are near to their critical support levels therefore downside looks limited from here. Tech Mahindra share price is trading at 200-week SMA that coincides with the ₹950 to ₹900 demand zone. Wipro is also trading near key psychological support of ₹400 while ₹380 is 200-week SMA. The long-term outlook of Indian IT stocks is still positive and such a healthy correction is a good opportunity to add them into the portfolio however short-term volatility can't be ruled out," said Santosh Meena, Head of Research at Swastika Investmart.

Suggesting positional stock market investors to keep an eye on speculations about slowdown in the US economy, Sumeet Bagadia, Executive Director at Choice Broking said, "Both Wipro and TechM shares are available at an attractive valuations but due to the speculations about slowdown in the US economy, global equity markets may remain under pressure in short to medium term. So, upside in most of the stocks is expected to remain limited and bears are expected to remain dominant in short to medium term. So, bulls are advised to buy Wipro and TechM shares in a calibrated manner maintaining buy on dips strategy in these two stocks."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.