WIT arrives at its July 16 Q1 FY2027 earnings report with the lending market continuing to thaw — yet the stock itself has deteriorated further, creating a split signal that makes tomorrow's print more consequential than the positioning alone suggests.
The borrow unwind has extended another notch since yesterday's preview. Availability has edged back to 18.2% — still tight by any reasonable standard, but a far cry from the effectively zero availability that persisted through most of June. Cost to borrow has fallen again to 28.2%, roughly one-twelfth of the 349% peak seen on June 24. Short interest has slipped to 67.3 million shares, down nearly 25% from a month ago. The ORTEX short score has drifted to 67.9, its lowest reading in the window shown, continuing a ten-session slide from 72.9 on June 30. The direction of travel in the lending market is unambiguous: bears have been covering steadily, and the most aggressive phase of short positioning is behind us. What remains is still elevated — availability below 20% is genuinely tight — but the acute squeeze pressure has dissipated.
Options positioning has continued to normalise, reinforcing that read. The put/call ratio has dropped to 1.93, now roughly 1.3 standard deviations below its 20-day average of 2.48. That is a notable shift from the extreme defensive skew that defined June, when the PCR briefly touched 6.3. Traders are still holding more puts than calls, but the gap has narrowed materially heading into the release. The stock, meanwhile, has moved in the opposite direction: down 3.2% on Monday and off 16% over the past month to $1.84. The easing in short positioning has not translated into price recovery.
The analyst picture is bearish and recently reinforced. JP Morgan cut its price target on WIT to $1.70 on June 24 — below the current price — while maintaining an Underweight rating. The consensus remains a sell. The most recent ORTEX notes flag that Wipro's Q1 FY2027 revenue guidance disappointed, with management citing cautious client spending and prolonged deal closure timelines. On the more constructive side, the ORTEX factor score assigns an EPS surprise rank of 69 and the stock scores well on value and growth relative to IT services peers. Bulls would point to a P/E around 15x and margin expansion from operational efficiencies; bears counter that revenue visibility has deteriorated and guidance downgrades are still flowing.
Tomorrow's print will test whether the revenue shortfall already anticipated in the stock's 16% monthly decline is worse than feared, or whether any margin or guidance beat is enough to give the retreating shorts a reason to stay away.
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