Netweb Tech share price hits 10% upper circuit for 2nd consecutive session; should you buy?

Netweb Tech share price hit its 10 per cent upper circuit for the second consecutive session on Thursday, January 30. Netweb Technologies' share price opened at ₹1,688 against its previous close of ₹1,606.35 and jumped 10 per cent to hit its upper price band of ₹1766.95.

In the previous session also, the stock jumped 10 per cent to hit its upper circuit, snapping its eight-session losing streak.

Netweb Technologies' update on DeepSeek AI impact

In an exchange filing on January 29, Netweb Technologies India said it views DeepSeek's emergence as a significant opportunity for its business growth.

“Evolving platforms and technologies will significantly boost the adoption of our AI solutions, reaffirming ample growth potential,” the company said.

Track DeepSeek News LIVE Updates Here

Explaining the rationale behind this belief, the company said DeepSeek paves the way for inclusive AI adoption, expanding the market further. 

"By lowering the cost barriers associated with advanced technology, it enables a wider range of customers—previously hesitant due to high adoption costs—to access and utilize appropriate computing resources. This empowers them to leverage AI effectively to address their business challenges, driving greater demand for our solutions," said Netweb Tech.

The company further said that its AI solutions portfolio is designed to provide multi-GPU/APU platforms that cater to both inference and training architectures.

"Our offerings include hardware, middleware, and utilities that seamlessly integrate with end-user applications like DeepSeek. As such, the performance acceleration enabled by platforms like DeepSeek will drive greater adoption of our solutions," said the company.

"The adoption of platforms like DeepSeek aligns with the interests of local governments and enterprises. This will accelerate the development of similar platforms within India," the company added.

Highlighting its solid revenue growth since FY24 and strong order pipeline, the company said it is strategically positioned for sustained growth with a strong business pipeline, continuous enhancements to its capabilities, and ongoing product expansion.

Netweb Technologies share price trend

Netweb Tech has seen modest gains over the past year, rising 11 per cent as of January 29. The stock faced a sharp selloff in January, plunging 37 per cent month-to-date by the last session.

The stock hit a 52-week high of ₹3,060 on December 17 and a 52-week low of 1,294.35 on February 13 last year.

Should Indian investors buy Netweb Tech stock?

Wednesday's sharp rally in the stock was driven by both its clarification and the broader uptick in tech sector sentiment.

Anshul Jain, the head of research at Lakshmishree Investment and Securities, underscored that the rise in Netweb shares should be seen from the perspective of Tuesday's relief rally in the Nasdaq-listed shares. He observed that after the ease of fear caused by the low-cost Chinese start-up, investors responded strongly to the tech shares across bourses.

"Tech stocks were expected to rise after Tuesday's relief rally in the Nasdaq-listed shares. Taking a cue from the US stock market, most of the tech shares on Dalal Street, barring Bharti Airtel and Indus Towers, are also trading green. The rally in Netweb's share price should be seen from this perspective," said Jain.

Discussing the technical factors, Sumeet Bagadia, Executive Director at Choice Broking, pointed out that technical charts show a possible bounce back in Netweb shares.

"The scrip has made a strong base at ₹1,450 apiece level. So, Netweb shareholders are advised to hold the scrip, maintaining a stop loss of ₹1,450. The scrip may touch the ₹1,850 to ₹1,900 per share mark soon," said Bagadia.

"Fresh investors can also initiate momentum buying, maintaining a 'buy-on-dip' strategy for a short-term target of ₹1,850 to ₹1,900. However, they must retain a stop loss at ₹1,450 while taking a fresh position at the tech counter," Bagadia said.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, observed that Netweb is currently exhibiting a bearish trend as it trades below the 200-day Exponential Moving Average (DEMA). However, the stock has recently rebounded from its strong historical support at the ₹1,500 level, indicating potential stability.

Patel anticipates a consolidation phase within the ₹1,600– ₹1,800 range in the near term before any decisive upward movement.

"Given this setup, a strategic approach would be to accumulate positions within the ₹1,600– ₹1,800 range while maintaining a long-term perspective. A breakout beyond ₹1,800 could signal the start of a bullish trend, with a potential target of ₹2,300 over the next three to four months. To manage risk effectively, a stop-loss should be placed at ₹1,500, ensuring downside protection," said Patel.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.