NETWEB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | NETWEB | Market Cap | 23,145 Cr. | Current Price | 4,065 ₹ | High / Low | 4,480 ₹ |
| Stock P/E | 130 | Book Value | 102 ₹ | Dividend Yield | 0.06 % | ROCE | 32.4 % |
| ROE | 23.9 % | Face Value | 2.00 ₹ | DMA 50 | 3,511 ₹ | DMA 200 | 3,121 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 1.38 % | PAT Qtr | 73.3 Cr. | PAT Prev Qtr | 31.4 Cr. |
| RSI | 70.7 | MACD | 195 | Volume | 13,26,611 | Avg Vol 1Wk | 15,82,490 |
| Low price | 1,397 ₹ | High price | 4,480 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.03 |
| 52w Index | 86.5 % | Qtr Profit Var | 147 % | EPS | 31.4 ₹ | Industry PE | 26.0 |
📈 Chart & Trend: NETWEB is trading well above its 50 DMA (3,511 ₹) and 200 DMA (3,121 ₹), confirming strong bullish momentum. RSI at 70.7 indicates overbought conditions, while MACD at 195 shows strong bullish crossover. Bollinger Bands are stretched, suggesting high volatility and risk of short-term pullback. The stock is trending upward but showing signs of exhaustion near resistance.
🔎 Momentum Signals: Entry zone is favorable near 3,950–4,000 ₹ support. Resistance lies at 4,400–4,480 ₹. A breakout above 4,480 ₹ could extend toward 4,550–4,600 ₹, while a breakdown below 3,950 ₹ risks pullback toward 3,800–3,850 ₹.
📊 Volume Trends: Current volume (13.2 lakh) is below the 1-week average (15.8 lakh), indicating reduced participation despite price strength. Sustained higher volumes are needed to confirm bullish continuation.
Positive
- Strong ROCE (32.4%) and ROE (23.9%) highlight excellent efficiency.
- Debt-to-equity ratio of 0.03 indicates minimal leverage risk.
- Quarterly PAT growth (73.3 Cr. vs 31.4 Cr.) shows robust earnings momentum (+147%).
- DII holdings increased (+1.38%), reflecting domestic institutional confidence.
Limitation
- Extremely high P/E (130) compared to industry average (26.0) suggests steep overvaluation.
- PEG ratio of 1.81 indicates valuations stretched relative to growth.
- RSI above 70 signals overbought conditions, limiting upside potential.
- Volume below average weakens conviction in breakout.
Company Negative News
- FII holdings declined (−0.26%), showing reduced foreign investor sentiment.
Company Positive News
- Quarterly profit variation (+147%) highlights strong earnings growth.
- DII inflows (+1.38%) reflect domestic confidence.
Industry
- Industry PE at 26.0 highlights NETWEB trades at a steep premium.
- Technology and IT infrastructure sector benefiting from digital transformation and enterprise demand.
Conclusion
⚖️ NETWEB is trending upward with strong technical signals supported by robust earnings and institutional inflows. Entry near 3,950–4,000 ₹ offers favorable risk-reward, while resistance lies at 4,400–4,480 ₹. Overvaluation, overbought RSI, and weak foreign sentiment are key risks. Suitable for swing trades with disciplined exits near resistance levels.