NETWORK18 - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.3

📊 Chart Patterns: NETWORK18 is trading at 42.0 ₹, far below its 52-week high (77.4 ₹). The chart shows a clear downtrend with weak attempts to recover, hovering near its 52-week low (39.6 ₹).

📈 Moving Averages: Current price is below both DMA 50 (46.3 ₹) and DMA 200 (53.1 ₹), confirming bearish sentiment.

📉 RSI: At 26.7, RSI is in oversold territory, suggesting potential for a short-term rebound but overall weakness.

📉 MACD: Negative (-1.36), showing bearish crossover and continuation of downward momentum.

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

📊 Volume Trends: Current volume (25.2 lakh) is higher than average weekly volume (22.0 lakh), showing increased activity but largely on the selling side.

📍 Momentum Signals: Short-term momentum is bearish. Oversold RSI may trigger a technical bounce, but trend remains weak.

🎯 Entry Zone: 40–42 ₹ (near support). Suitable only for speculative rebound trades with strict risk management.

🎯 Exit Zone: 46–50 ₹ (near 50 DMA resistance). Strong resistance at 53 ₹ (200 DMA).

🔎 Trend Status: The stock is reversing downward and currently in a bearish phase with weak consolidation attempts.

Positive

• Book value of 33.2 ₹ provides some valuation cushion.
• EPS of 24.7 ₹ supports potential long-term valuation if profitability improves.
• Volume activity higher than average, showing investor interest despite weakness.

Limitation

• Negative ROCE (-1.20%) and ROE (-9.29%) indicate poor efficiency and weak returns.
• No dividend yield (0.00%), reducing investor appeal.
• Price trading below both 50 DMA and 200 DMA.
• Debt-to-equity ratio at 0.63 is relatively high.

Company Negative News

• Quarterly PAT remained negative (-70.1 Cr. vs -70.8 Cr.).
• FII holdings decreased (-0.31%) and DII holdings decreased (-0.07%).
• Stock corrected sharply from 77.4 ₹ to 42.0 ₹.

Company Positive News

• Quarterly profit variation shows slight improvement (+5.82%) despite losses.
• EPS remains positive (24.7 ₹), indicating potential if profitability stabilizes.

Industry

• Industry PE is 39.2, but NETWORK18 has no meaningful P/E due to losses.
• Media and entertainment sector remains cyclical, sensitive to advertising demand and economic conditions.

Conclusion

⚠️ NETWORK18 is in a bearish trend, trading below key moving averages with oversold RSI. Fundamentals remain weak with negative profitability and no dividend support. Short-term traders may attempt speculative entries near 40–42 ₹ with exits around 46–50 ₹, but long-term investors should avoid until profitability stabilizes and the stock sustains above 200 DMA.