NETWORK18 - Swing Trade Analysis

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

Swing Trade Rating: 2.3

📉 Technical & Momentum Analysis

Price Positioning: Current price ₹56.5 is above 50 DMA (₹55.4) but below 200 DMA (₹59.3) — mixed signals, with long-term trend still bearish.

RSI (47.7) — neutral, no clear momentum.

MACD (0.75) — mildly positive, but not strong enough to confirm a breakout.

Volume: Below 1-week average — suggests lack of conviction from traders.

📊 Fundamental Overview

Valuation

P/E: Not available due to negative earnings.

EPS (−₹9.46) — indicates consistent losses.

Book Value (₹30.8) — price trades at ~1.83x book, not excessive.

Profitability

ROCE (0.61%) and ROE (−3.34%) — extremely weak, poor capital efficiency.

Dividend Yield (0.00%) — no income incentive.

Quarterly Performance

PAT Qtr: −₹1.78 Cr vs Prev Qtr: −₹19.0 Cr — improvement, but still negative.

Qtr Profit Var: +98.6% — positive trend, but from a loss-making base.

Debt-to-Equity (0.62) — moderate leverage.

FII/DII Holding

FII down (−0.13%), DII up (+0.03%) — minimal institutional movement.

⚠️ Swing Trade Strategy

Current Setup: Weak fundamentals and uncertain technicals make it a risky swing trade.

Speculative Entry Only: Suitable only for high-risk traders looking for a short-term bounce.

Optimal Entry Price: ₹54–₹55 (near 50 DMA and support zone)

Target Exit Price: ₹60–₹62 (near 200 DMA and resistance)

Stop Loss: ₹52.5 (below recent support)

🧭 If You Already Hold the Stock

Exit near ₹60–₹62 if price rebounds and MACD strengthens.

Cut Losses if price breaks below ₹52.5 or RSI dips below 45 with MACD turning negative.

This stock may offer short-term speculative opportunities, but it's not a strong candidate for swing trading due to poor financials and weak long-term trend.

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