NETWORK18 - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.2
| Stock Code | NETWORK18 | Market Cap | 6,197 Cr. | Current Price | 40.2 ₹ | High / Low | 65.3 ₹ |
| Book Value | 33.2 ₹ | Dividend Yield | 0.00 % | ROCE | -1.20 % | ROE | -9.29 % |
| Face Value | 5.00 ₹ | DMA 50 | 44.3 ₹ | DMA 200 | 51.3 ₹ | Chg in FII Hold | -0.31 % |
| Chg in DII Hold | -0.07 % | PAT Qtr | -55.8 Cr. | PAT Prev Qtr | -70.1 Cr. | RSI | 32.4 |
| MACD | -0.86 | Volume | 33,09,176 | Avg Vol 1Wk | 27,95,270 | Low price | 39.6 ₹ |
| High price | 65.3 ₹ | Debt to equity | 0.63 | 52w Index | 2.60 % | Qtr Profit Var | 15.8 % |
| EPS | 1.74 ₹ | Industry PE | 40.5 |
📊 Chart Patterns: NETWORK18 is trading near its 52-week low (39.6 ₹) and well below both 50 DMA (44.3 ₹) and 200 DMA (51.3 ₹), indicating a clear downtrend. Price action reflects weakness and inability to sustain higher levels.
📈 Moving Averages: Current price (40.2 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment in short-term and long-term trends.
📉 RSI: At 32.4, RSI is close to oversold territory, suggesting weak momentum but potential for minor rebound.
📉 MACD: Negative (-0.86), showing bearish crossover and confirming downward momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting selling pressure and possible short-term bounce.
📊 Volume Trends: Current volume (33.1 lakh) is slightly above average weekly volume (27.9 lakh), indicating selling pressure with higher participation.
📌 Momentum Signals: Weak RSI, negative MACD, and price below moving averages point to bearish continuation. Minor rebound possible near support but upside is capped.
🎯 Entry Zone: 39–41 ₹ (near support).
🎯 Exit Zone: 45–48 ₹ (near 50 DMA resistance).
⚠️ Stop Loss: Below 38 ₹.
📉 Trend Status: The stock is trending downward with weak technical signals and limited upside potential.
Positive
- ✅ Book value (33.2 ₹) provides some valuation cushion relative to current price.
- ✅ EPS of 1.74 ₹ shows positive earnings despite losses in recent quarters.
- ✅ Slight improvement in quarterly PAT (-55.8 Cr. vs -70.1 Cr.), showing reduced losses.
Limitation
- ⚠️ ROCE (-1.20%) and ROE (-9.29%) are negative, reflecting poor efficiency and profitability.
- ⚠️ Price trading below both 50 DMA and 200 DMA, confirming bearish technical setup.
- ⚠️ No dividend yield, reducing investor appeal.
- ⚠️ Debt-to-equity ratio of 0.63 indicates moderate leverage.
Company Negative News
- 📉 Continued quarterly losses, though slightly reduced.
- 📉 FII holdings reduced (-0.31%) and DII holdings reduced (-0.07%), showing investor caution.
Company Positive News
- 📈 Marginal improvement in quarterly PAT compared to previous quarter.
- 📈 Trading close to book value, offering potential value support.
Industry
- ⚡ Industry P/E at 40.5 highlights sector valuation strength, but NETWORK18 lacks earnings to match peers.
- ⚡ Media and broadcasting sector remains cyclical, offering potential upside if profitability stabilizes.
Conclusion
🔎 NETWORK18 is in a bearish trend, trading below key moving averages with weak RSI and negative MACD. Fundamentals remain weak with continued losses and investor outflows. Investors may consider cautious accumulation only near 39–41 ₹ with strict stop-loss discipline at 38 ₹, targeting 45–48 ₹ for short-term gains if minor rebound occurs.