NETWORK18 - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 2.6

Technical Analysis Summary

• Trend: Reversing with persistent bearish momentum
• Moving Averages: Price (₹47.9) is below both DMA 50 (₹52.0) and DMA 200 (₹56.4), indicating sustained downtrend
• RSI (31.4): Near oversold zone, suggesting potential for technical bounce
• MACD (-1.41): Bearish crossover, confirming downward pressure
• Bollinger Bands: Price near lower band, indicating oversold conditions but no reversal signal yet
• Volume: Below average (23.6L vs 30.0L), showing weak participation

Entry & Exit Zones

• Support: ₹44 – ₹46 (recent base and psychological level)
• Resistance: ₹52 – ₹56 (DMA 50/200 and prior breakdown zone)
• Optimal Entry: ₹45 – ₹47 if RSI stabilizes and MACD flattens
• Exit Zone: ₹52 – ₹56 if price rebounds and faces resistance

Positive

• EPS of ₹24.7 despite recent losses
• Price near 52-week low may offer value opportunity for contrarian investors
• Debt-to-equity ratio of 0.63 is moderate for the media sector

Limitation

• Negative ROCE (-1.20%) and ROE (-9.29%) reflect poor capital efficiency
• Consistent quarterly losses (₹70.1 Cr. current vs ₹70.8 Cr. previous)
• Price significantly below key moving averages, indicating weak sentiment
• Decline in both FII (-0.31%) and DII (-0.07%) holdings

Company Negative News

• Ongoing losses and operational inefficiencies raise concerns over long-term sustainability

Company Positive News

• Minor improvement in quarterly loss suggests early signs of stabilization
• Potential for turnaround with strategic restructuring or sectoral tailwinds

Industry

• NETWORK18 operates in the media and broadcasting sector
• Peers include Zee Entertainment, TV18 Broadcast, and Sun TV Network

Conclusion

NETWORK18 is currently reversing with weak technical indicators and bearish sentiment. While the stock is near oversold territory and may attract short-term interest, persistent losses and declining institutional interest warrant caution. Traders may consider speculative entry near ₹45 with tight stop-losses and targets around ₹56, awaiting confirmation of trend reversal.