Shares of Netweb Technologies India Ltd plunged 9.52 per cent on Thursday to close at Rs 3,945. Despite this, the multibagger stock has rallied 177.33 per cent over the last six months.
Bourses BSE and NSE have put the securities of Netweb Tech under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
The high-end computing solutions (HCS) manufacturer, in a post-market filing, announced that it has entered into a strategic partnership with Bengaluru-based AI research and product company, Bud Ecosystem (Bud). Under the collaboration, the two companies will jointly develop affordable, localised AI infrastructure solutions tailored for the Indian market.
From a technical perspective, Netweb Tech has risen sharply after breaking past Rs 3,000, but analysts caution that the stock is overbought and may see short-term profit booking. While the broader trend remains bullish and a buy-on-dip approach near Rs 3,600-3,700 is suggested, key support levels are at Rs 3,600 and Rs 3,500, with immediate resistance around Rs 4,380. A drop below Rs 3,955 could trigger further declines toward Rs 3,540.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, observed that Netweb Tech has maintained strong upward momentum after breaking out from the Rs 3,000 zone. Technically, the stock has entered overbought territory, which could prompt some profit-taking in the near term. He added that Rs 3,600 is expected to act as a key support level, followed by crucial support at the breakout neckline of Rs 3,000.
Drumil Vithlani, Technical Analyst at Bonanza, noted that Netweb Tech has rallied sharply-almost doubling from its August lows-on the back of robust volumes and strong bullish momentum. The stock is witnessing mild profit booking after its steep climb, though the broader trend remains positive, with prices comfortably above all major moving averages. Vithlani advised against fresh entries at current elevated levels, suggesting instead a buy-on-dip approach near Rs 3,600-3,700. He recommended placing a stop loss at Rs 3,500, with potential upside targets of Rs 4,600-4,800.
Sebi-registered analyst AR Ramachandran remarked that Netweb Tech appears bearish and overbought on daily charts, facing its next resistance at Rs 4,380. He suggested that investors book profits, warning that a daily close below the Rs 3,955 support level could lead to a decline toward Rs 3,540 in the near term.