NETWEB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | NETWEB | Market Cap | 21,961 Cr. | Current Price | 3,852 ₹ | High / Low | 4,492 ₹ |
| Stock P/E | 107 | Book Value | 127 ₹ | Dividend Yield | 0.06 % | ROCE | 37.5 % |
| ROE | 32.8 % | Face Value | 2.00 ₹ | DMA 50 | 3,727 ₹ | DMA 200 | 3,245 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 1.38 % | PAT Qtr | 70.6 Cr. | PAT Prev Qtr | 73.3 Cr. |
| RSI | 49.6 | MACD | 39.1 | Volume | 6,38,537 | Avg Vol 1Wk | 10,21,617 |
| Low price | 1,700 ₹ | High price | 4,492 ₹ | PEG Ratio | 1.68 | Debt to equity | 0.39 |
| 52w Index | 77.1 % | Qtr Profit Var | 65.7 % | EPS | 36.2 ₹ | Industry PE | 26.8 |
📈 Chart & Trend: NETWEB is trading at 3,852 ₹, above both its 50 DMA (3,727 ₹) and 200 DMA (3,245 ₹), confirming strong long-term technical strength. Support lies at 3,800–3,820 ₹, with resistance around 3,950–4,000 ₹.
🔎 Momentum Signals: RSI at 49.6 indicates neutral momentum. MACD at 39.1 shows a mild bullish crossover. Entry zone: 3,800–3,820 ₹. Exit zone: 3,950–4,000 ₹.
📊 Volume Trends: Current volume (6.39 Lakh) is below the 1-week average (10.2 Lakh), reflecting reduced participation and cautious sentiment.
📉 Bollinger Bands: Bands are moderately tight, suggesting consolidation with potential breakout attempts.
📌 Trend Status: The stock is consolidating near support levels with mild bullish bias supported by moving averages.
Positive
- Trading above both 50 DMA and 200 DMA confirms technical strength.
- Strong ROCE (37.5%) and ROE (32.8%) highlight efficient capital use.
- EPS of 36.2 ₹ supports profitability.
- DII holdings increased (+1.38%), showing domestic institutional confidence.
- Quarterly PAT remains strong (70.6 Cr.), reflecting earnings stability.
Limitation
- High P/E (107) compared to industry average (26.8) indicates steep overvaluation.
- Volume below average reflects weak investor conviction.
- FII holdings declined (-0.26%), showing reduced foreign investor support.
- PEG ratio of 1.68 suggests valuation risk relative to growth.
Company Negative News
- Sequential PAT decline (70.6 Cr. vs 73.3 Cr.) highlights earnings pressure.
- Foreign institutional investors reduced exposure.
Company Positive News
- DII inflows (+1.38%) reflect strong domestic institutional support.
- Quarterly profit variation (+65.7%) highlights earnings momentum.
Industry
- Industry PE at 26.8 suggests sector is moderately valued compared to NETWEB’s premium valuation.
- Technology and IT infrastructure sector benefiting from digital transformation and enterprise demand.
Conclusion
NETWEB is consolidating near support levels with neutral momentum but strong fundamentals. Attractive ROCE/ROE and institutional support provide stability, though steep valuations and weak volume limit immediate upside. Best suited for cautious entry near 3,800–3,820 ₹ with profit booking around 3,950–4,000 ₹.
NETWEB is in a consolidating phase with strong fundamentals but valuation risks. To broaden the view, I can extend this into a peer benchmarking analysis or a sector overlay comparison to highlight its position against technology peers.