NETWEB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.2

📊 Chart Patterns: NETWEB is trading at 3,252 ₹, slightly below its 50 DMA (3,308 ₹) but above its 200 DMA (2,748 ₹). The chart shows weakness after a correction from the 52-week high (4,480 ₹), with support holding near 3,200 ₹.

📈 Moving Averages: Price is below the 50 DMA but above the 200 DMA, indicating medium-term bullishness but short-term weakness.

📉 RSI: At 41.8, RSI is neutral-to-weak, suggesting consolidation with limited downside risk.

📉 MACD: Strongly negative (-74.7), showing bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is near the lower band, indicating selling pressure and possible volatility squeeze.

📊 Volume Trends: Current volume (3.43 lakh) is below average weekly volume (5.07 lakh), showing reduced participation and lack of strong buying interest.

📍 Momentum Signals: Short-term momentum is bearish. RSI suggests consolidation near support but no strong reversal yet.

🎯 Entry Zone: 3,150–3,250 ₹ (near support). Suitable for accumulation with risk management.

🎯 Exit Zone: 3,350–3,400 ₹ (near 50 DMA resistance). Strong resistance at 3,450 ₹.

🔎 Trend Status: The stock is consolidating after a correction, with sideways movement expected near support levels.

Positive

• Strong ROCE (32.4%) and ROE (23.9%) indicate efficient capital use.
• Debt-to-equity ratio is very low (0.03), ensuring financial stability.
• Quarterly PAT improved (31.4 Cr. vs 30.5 Cr.), showing growth (+20%).
• FII holdings increased (+1.28%), showing foreign investor confidence.

Limitation

• High P/E (137) compared to industry average (31.6), indicating premium valuation.
• Dividend yield is very low (0.08%), reducing income appeal.
• MACD strongly negative, showing short-term weakness.
• Volume participation below average.

Company Negative News

• Stock corrected from 4,480 ₹ to 3,252 ₹.
• DII holdings declined (-0.66%).

Company Positive News

• Quarterly PAT grew (+20%).
• FII holdings increased (+1.28%).
• Debt-free balance sheet strengthens investor confidence.

Industry

• Industry PE is 31.6, much lower than NETWEB’s 137, highlighting premium valuation.
• Technology sector remains growth-oriented, supported by demand for digital infrastructure and innovation.

Conclusion

⚠️ NETWEB is consolidating near support levels with weak technical momentum. Fundamentals show profitability and efficiency, but high valuation limits upside. Traders may consider entries near 3,150–3,250 ₹ with exits around 3,350–3,400 ₹. Long-term investors should wait for earnings growth to justify premium valuation before committing further.