Tag: Broader

Wipro Drops Most Since April, Analysts Await Broader Recovery

(Bloomberg) — Shares of Wipro Ltd. slipped the most intraday in six months after its quarterly profit missed estimates, with some analysts saying they want to see more evidence of business recovery under the new leadership.

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The software exporter posted July-September net income of 24.7 billion rupees on Tuesday, down 3.1% on-year and below an estimate of 25.2 billion rupees in a Bloomberg survey. The company also said it will spend as much as 95 billion rupees ($1.3 billion) buying back its shares at 400 rupees each.

Wipro’s stock slumped as much as 6.9% and was the worst performer on the benchmark NSE Nifty 50 Index on Wednesday. Investec, Antique Stock Broking and Spark Capital Advisors were among brokers that downgraded the stock.

“We await further evidence of execution of Wipro’s refreshed strategy and a successful turnaround from its growth struggles over the last decade before turning more

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Weakness In The XLK, XLC, And XLY Signal Weakness In The Broader Averages (ETF Sector Performance For The Week Of 9/14-9/18)

Investment thesis: technology, communication services, and consumer discretionary are three of the largest components in the SPY and QQQ. All three are weakening, which means the broader averages are probably heading lower.

Let’s start with this list of the SPY’s sector components:

Information technology, communication services, and consumer discretionary comprise 49.63% of the index.

Here’s the same data for the QQQ:

Information tech, communication services, and consumer discretionary comprise 85.18% of the QQQ.

If we think of the individual sectors as the frame or scaffolding for the SPY and QQQ, then the (XLK), (XLC), and (XLY) are the important support structures for the QQQ and and SPY. Unfortunately, all three sectors are weakening, indicating the most likely course for the QQQ and SPY is lower.

Let’s start with the XLK’s daily chart:Prices broke a nearly 3-month uptrend this week. There is an accompanying volume spike indicating increased activity. Prices

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