NETWEB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | NETWEB | Market Cap | 18,725 Cr. | Current Price | 3,306 ₹ | High / Low | 4,480 ₹ |
| Stock P/E | 105 | Book Value | 102 ₹ | Dividend Yield | 0.08 % | ROCE | 32.4 % |
| ROE | 23.9 % | Face Value | 2.00 ₹ | DMA 50 | 3,236 ₹ | DMA 200 | 2,863 ₹ |
| Chg in FII Hold | -1.27 % | Chg in DII Hold | -0.27 % | PAT Qtr | 73.3 Cr. | PAT Prev Qtr | 31.4 Cr. |
| RSI | 54.6 | MACD | -23.5 | Volume | 25,48,572 | Avg Vol 1Wk | 13,30,481 |
| Low price | 1,252 ₹ | High price | 4,480 ₹ | PEG Ratio | 1.46 | Debt to equity | 0.03 |
| 52w Index | 63.6 % | Qtr Profit Var | 147 % | EPS | 31.4 ₹ | Industry PE | 25.7 |
📊 Chart & Trend Analysis:
NETWEB is trading at ₹3,306, above both its 50 DMA (₹3,236) and 200 DMA (₹2,863), indicating medium-term bullish strength. RSI at 54.6 suggests neutral-to-positive momentum, not overbought. However, MACD at -23.5 shows a bearish crossover, signaling short-term weakness despite the broader uptrend. Bollinger Bands place price near the mid-range, reflecting consolidation. Current volume (25.5 lakh) is significantly higher than the 1-week average (13.3 lakh), showing strong participation and heightened volatility.
📈 Momentum Signals:
- RSI neutral, leaning bullish.
- MACD negative crossover indicates short-term weakness.
- Price above both 50 & 200 DMA supports medium-term bullish trend.
- High volume suggests strong activity, possibly profit booking or accumulation.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹3,250 – ₹3,300 (near 50 DMA support).
- Exit Zone: ₹3,450 – ₹3,500 (resistance near recent highs).
- Stop Loss: ₹3,150 (below key support).
📌 Trend Status: The stock is consolidating with bullish bias, supported by moving averages but facing short-term weakness from MACD.
Positive
- Strong ROCE (32.4%) and ROE (23.9%) highlight efficient capital use.
- Debt-to-equity ratio of 0.03 indicates near debt-free status.
- Quarterly PAT surged to ₹73.3 Cr. from ₹31.4 Cr., showing robust growth (+147%).
- EPS of ₹31.4 reflects solid earnings base.
Limitation
- High P/E (105) compared to industry average (25.7) suggests overvaluation.
- Dividend yield of 0.08% is negligible, limiting income appeal.
- MACD negative crossover signals short-term weakness.
Company Negative News
- FII holding decreased (-1.27%), showing reduced foreign investor confidence.
- DII holding decreased (-0.27%), reflecting weaker domestic institutional support.
Company Positive News
- Quarterly profit growth of 147% signals strong operational performance.
- Debt-free status supports financial stability.
- EPS strength reinforces long-term investor confidence.
Industry
- Industry P/E at 25.7 is far lower than NETWEB’s P/E (105), suggesting relative overvaluation.
- Technology and IT infrastructure sector remains growth-oriented, supported by digital transformation and enterprise demand.
Conclusion
⚖️ NETWEB is consolidating with bullish bias, trading above key moving averages but showing short-term weakness from MACD. Fundamentals remain strong with robust profit growth, high ROE/ROCE, and debt-free status, though valuations are stretched and institutional selling is a concern. Short-term traders may consider entry near ₹3,250–₹3,300 with exits around ₹3,450–₹3,500, while long-term investors should wait for valuation correction before fresh accumulation.