NETWEB - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for NETWEB based on the given parameters
📊 Swing Trade Rating: 4.3
| Stock Code | NETWEB | Market Cap | 28,910 Cr. | Current Price | 5,080 ₹ | High / Low | 5,208 ₹ |
| Stock P/E | 140 | Book Value | 127 ₹ | Dividend Yield | 0.05 % | ROCE | 37.5 % |
| ROE | 32.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,157 ₹ | DMA 200 | 3,457 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 1.38 % | PAT Qtr | 70.6 Cr. | PAT Prev Qtr | 73.3 Cr. |
| RSI | 66.6 | MACD | 227 | Volume | 39,40,043 | Avg Vol 1Wk | 32,76,118 |
| Low price | 1,700 ₹ | High price | 5,208 ₹ | PEG Ratio | 2.21 | Debt to equity | 0.39 |
| 52w Index | 96.3 % | Qtr Profit Var | 65.7 % | EPS | 36.2 ₹ | Industry PE | 24.4 |
NETWEB shows strong swing trade potential. The current price of 5,080 ₹ is well above both the 50 DMA (4,157 ₹) and 200 DMA (3,457 ₹), reflecting robust bullish momentum. RSI at 66.6 indicates the stock is nearing overbought territory, while MACD at 227 confirms strong upward momentum. Fundamentals are impressive with ROCE at 37.5%, ROE at 32.8%, and EPS at 36.2 ₹. However, valuation is stretched (P/E 140 vs industry 24.4, PEG 2.21). Institutional flows are mixed with FII outflows (-0.26%) and DII inflows (+1.38%).
Optimal Entry Price: 4,950–5,050 ₹, near support levels.
Exit Strategy if Holding: Consider profit booking around 5,150–5,200 ₹. If momentum sustains, monitor for breakout beyond 5,208 ₹ resistance.
✅ Positive
- 📈 Strong ROCE (37.5%) and ROE (32.8%).
- 💹 EPS of 36.2 ₹ reflects solid profitability.
- 📊 Price trading well above both 50 DMA and 200 DMA.
- 📈 DII inflows (+1.38%) add domestic support.
⚠️ Limitation
- 📉 Very high P/E (140) compared to industry average (24.4).
- 📊 PEG ratio of 2.21 suggests valuation stretched relative to growth.
- 📉 Dividend yield of 0.05% is negligible.
- 📉 Debt-to-equity ratio of 0.39 indicates moderate leverage.
🚨 Company Negative News
- 📉 FII holding decreased (-0.26%), showing reduced foreign confidence.
- ⚠️ Valuation concerns due to high P/E and PEG.
🌟 Company Positive News
- 📈 Quarterly PAT stability supports sentiment (70.6 Cr. vs 73.3 Cr.).
- 💹 DII inflows (+1.38%) provide domestic institutional support.
- 📊 Technical strength with bullish MACD and RSI in healthy range.
🏭 Industry
- 📊 Industry P/E at 24.4 is much lower, showing NETWEB trades at a premium.
- 💻 Technology and industrial solutions sector remains growth-oriented, often trading at premium valuations.
📌 Conclusion
⚖️ NETWEB is a strong candidate for swing trading with robust fundamentals, technical strength, and institutional support. Entry near 4,950–5,050 ₹ offers a favorable risk-reward setup, with exit targets around 5,150–5,200 ₹. Traders should remain cautious of stretched valuations and monitor FII activity closely.
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