NETWEB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 4.2

Technical Analysis Summary

• Trend: Trending upward with strong momentum
• Moving Averages: Price (₹4,039) is well above DMA 50 (₹3,407) and DMA 200 (₹2,519), confirming bullish strength
• RSI (59.5): Bullish zone, with room before overbought territory
• MACD (167): Strong bullish crossover, indicating continued upward momentum
• Bollinger Bands: Price near upper band, suggesting strength but possible short-term resistance
• Volume: Above average (50.1L vs 37.6L), showing strong market interest

Entry & Exit Zones

• Support: ₹3,850 – ₹3,900 (recent base and psychological level)
• Resistance: ₹4,300 – ₹4,480 (recent high zone)
• Optimal Entry: ₹3,900 – ₹4,000 on pullback with MACD support
• Exit Zone: ₹4,300 – ₹4,480 if price stalls near resistance

Positive

• Strong ROCE (32.4%) and ROE (23.9%) indicate solid operational efficiency
• EPS of ₹22.8 and low debt-to-equity ratio (0.01)
• Price up 86.4% over 52 weeks
• Positive FII sentiment (+1.28%) and 100% quarterly profit growth

Limitation

• High P/E of 177 vs industry average of 33.1 suggests premium valuation
• PEG ratio of 2.46 indicates overvaluation relative to growth
• Quarterly PAT decline from ₹42.6 Cr. to ₹30.5 Cr.
• Negative DII sentiment (-0.66%)

Company Negative News

• Concerns over sustainability of high valuation and margin pressures in tech hardware segment

Company Positive News

• Strong demand for high-performance computing and data center solutions
• Expansion into AI infrastructure and enterprise server markets

Industry

• NETWEB operates in the IT hardware and enterprise computing sector
• Peers include HCL Infosystems, Dell India, and Lenovo

Conclusion

NETWEB is currently trending upward with strong technical indicators and robust investor interest. While valuation metrics suggest caution, momentum and sector tailwinds support a bullish outlook. Traders may consider entry near ₹3,900 with targets around ₹4,480, watching RSI and MACD for signs of continuation or exhaustion.