Shares of IT services firm Netweb Technologies hit their record high amid a rally in the broader market today. Netweb Technologies shares, which have surged 39% in a week, are in a strong uptrend.
In a month, the IT stock has rallied 48%. The stock has gained 271% in two years.
The Relative Strength Index (RSI) currently stands at an elevated 81.7, indicating overbought conditions, while the ADX is at 43, reflecting a strong trend.
However, the stock has also seen high volatility in a year with a beta of 1.6.
The multibagger stock rose to a high of Rs 3312 in the current session against the previous close of Rs 3082 on BSE. Market cap of the IT firm climbed to Rs 17,754 crore.
A total of 11.57 lakh shares of the firm changed hands amounting to a turnover of Rs 363.19 crore on BSE. Netweb Technologies stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio says, “Netweb Technologies is in a strong breakout phase with the momentum favouring bulls. A sustained move above Rs 3,000 can open gates toward Rs 3,250-3,600, while maintaining a stop loss near Rs 2,850 for traders. RSI is above 70, indicating strong bullish momentum. While it is in the overbought zone, such momentum stocks often continue trending higher. Price is trading well above both the 50-DMA and 200-DMA, confirming a medium-to-long-term uptrend.”
Jigar S Patel from Anand Rathi said, “Support will be at Rs 2950 and resistance at Rs 3314. A decisive move above the Rs 3314 level may trigger a further upside of 3400. The expected trading range will be between Rs 2900 and Rs 3400 for the short-term.”
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox says, “The sharp up move has been driven by strong buying momentum, but the stock now shows signs of near-term profit booking. From a technical perspective, Netweb is trading above the important Rs 3,000 mark, which now acts as a key support. The stock maintains a buy-on-dip structure as long as it sustains above this level. A break below Rs 2,950 would invalidate this bullish view, signaling potential further consolidation or correction. Given the momentum, the stock is likely to reach the target of Rs 3,500 in the near term. It is advisable to buy on dips near Rs 3,000, with stop-loss at Rs 2,950, as long as the uptrend remains intact.”
Netweb Technologies India is in the business of “Computer Server” which includes transforming storage and computing with innovative Servers, Workstations, Storage, Cloud, HPC, AI and Big Data solutions.