NETWEB - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.2

📊 Technical & Momentum Analysis

Current Price (₹2,135) is above both 50-DMA (₹1,875) and 200-DMA (₹1,925) — bullish structure.

RSI (68.3): Approaching overbought — momentum is strong but caution is warranted.

MACD (49.7): Strongly positive — confirms upward momentum.

Volume Surge: Current volume far exceeds weekly average — indicates strong market interest.

📈 Fundamental Overview

P/E (93.6) vs Industry PE (32.0): Highly overvalued — priced for aggressive growth.

PEG Ratio (1.30): Acceptable — growth justifies valuation to some extent.

ROCE (32.4%) & ROE (23.9%): Excellent — strong operational and financial efficiency.

Debt to Equity (0.01): Virtually debt-free — very stable.

EPS (₹22.8): Solid earnings base.

Quarterly Profit Growth (100%): Impressive — strong earnings momentum.

Institutional Activity: FII (-1.13%) and DII (-1.11%) reduced holdings — mild concern.

⚖️ Swing Trade Suitability

Why It’s a Strong Candidate

Bullish technical setup with strong momentum.

Excellent fundamentals and earnings growth.

High volume confirms trader interest.

Risks to Watch

RSI nearing overbought — potential short-term pullback.

Valuation is stretched — not ideal for long-term hold.

Institutional selling — may cap upside.

🎯 Optimal Entry Price

Entry Zone: ₹2,050–₹2,100 — slight pullback near support levels would offer a better risk-reward setup.

🚪 Exit Strategy

If Holding: Consider exiting near ₹2,300–₹2,400 — short-term resistance zone before previous highs.

Stop Loss: ₹1,950 — just below 200-DMA to protect against trend reversal.

NETWEB is a high-momentum, growth-driven stock with strong fundamentals and technicals. While valuation is rich, its earnings trajectory and market interest make it a compelling swing trade — just keep an eye on RSI and institutional flows.

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