NETWEB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | NETWEB | Market Cap | 18,794 Cr. | Current Price | 3,300 ₹ | High / Low | 4,480 ₹ |
| Stock P/E | 106 | Book Value | 102 ₹ | Dividend Yield | 0.08 % | ROCE | 32.4 % |
| ROE | 23.9 % | Face Value | 2.00 ₹ | DMA 50 | 3,308 ₹ | DMA 200 | 2,991 ₹ |
| Chg in FII Hold | -1.27 % | Chg in DII Hold | -0.27 % | PAT Qtr | 73.3 Cr. | PAT Prev Qtr | 31.4 Cr. |
| RSI | 48.6 | MACD | -16.0 | Volume | 10,83,625 | Avg Vol 1Wk | 12,66,575 |
| Low price | 1,252 ₹ | High price | 4,480 ₹ | PEG Ratio | 1.47 | Debt to equity | 0.03 |
| 52w Index | 63.4 % | Qtr Profit Var | 147 % | EPS | 31.4 ₹ | Industry PE | 23.1 |
📉 Chart & Trend: NETWEB is trading at ₹3,300, aligned with both 50 DMA (₹3,308) and 200 DMA (₹2,991), indicating consolidation. RSI at 48.6 shows neutral momentum, while MACD at -16.0 reflects negative crossover. Bollinger Bands suggest price is mid-range, showing sideways movement with limited volatility.
📊 Volume: Current volume (10.8 L) is lower than the 1-week average (12.6 L), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals: Short-term momentum is weak. Support levels are seen at ₹3,250–₹3,280 and strong support at ₹2,991 (200 DMA). Resistance lies at ₹3,350–₹3,400 and ₹4,480 (recent high).
🎯 Entry Zone: ₹3,250–₹3,280 (risk-managed entry zone).
🚪 Exit Zone: ₹3,350–₹3,400 (profit-taking zone near resistance).
🔎 Trend Status: Consolidation with bearish bias. The stock is consolidating around its moving averages, with neutral RSI and negative MACD signaling caution.
Positive
- Strong ROCE (32.4%) and ROE (23.9%) show efficient capital use.
- EPS at ₹31.4 reflects consistent earnings power.
- Debt-to-equity ratio of 0.03 indicates negligible leverage.
- Quarterly PAT surged to ₹73.3 Cr from ₹31.4 Cr, showing strong sequential growth.
Limitation
- High P/E (106) compared to industry average (23.1) indicates extreme overvaluation.
- Dividend yield of 0.08% is very low.
- PEG ratio of 1.47 suggests moderately expensive growth prospects.
- Volume participation is weaker than average, limiting momentum strength.
Company Negative News
- FII holding reduced by -1.27% and DII holding by -0.27%, reflecting weaker institutional sentiment.
- MACD at -16.0 shows bearish crossover, limiting near-term upside.
Company Positive News
- Quarterly profit variation at 147% highlights strong sequential improvement.
- Debt-free balance sheet supports long-term stability.
Industry
- Industry PE at 23.1 is far lower than NETWEB’s P/E of 106, suggesting severe overvaluation relative to peers.
- Technology and IT hardware sector benefits from rising demand but faces cyclical risks tied to global supply chains and competition.
Conclusion
⚠️ NETWEB is in a consolidation phase with bearish bias, trading around its moving averages with neutral RSI and negative MACD. Fundamentals show strong efficiency, negligible debt, and robust profit growth, but extreme valuations, weak institutional support, and low dividend yield limit upside. Short-term traders may consider entries near ₹3,250–₹3,280 with exits around ₹3,350–₹3,400, while long-term investors should wait for valuation correction and stronger institutional inflows before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay against other IT hardware and tech manufacturing companies like Dixon Technologies, Syrma SGS, and Kaynes Technology? That would highlight whether NETWEB’s consolidation is sector-driven or company-specific.