Shares of software services exporter Wipro Ltd fall as much as 3.96 per cent to Rs 282.4, their lowest since May 28.
The shares of Indian IT services firms drop following a Reuters report which cited that the United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally.
The stock breaks below a support at Rs 285.4, the 14.6 per cent Fibonacci retracement level on the uptrend from June 27, 2018 low to June 14, 2019 high. It has also broken below its 50-day exponential moving average.
A close below the 14.6 per cent level may lead to a further fall to a support at Rs 275.42, the 23.6 per cent retracement level, in the near term. A wave pattern suggests that the stock may have completed a three-wave uptrend and a three-wave downtrend may have started.
The stock cut below its parabolic SAR on Wednesday, indicating possible reversal of the uptrend. The stock of Wipro was up 18.5 per cent this year, as of last close, compared with the broader NSE Index's 7.6 per cent gain in the same period.