AI-Fueled Growth Drives Netweb Rally: SEBI RAs See Breakout Potential But Also Warn Of Correction Ahead

SEBI analyst shares two scenarios – either a breakout to new highs or a steep correction that offers long-term entry points.

Netweb shares surged 15% on Monday, as investors cheered its strong order book and robust fourth-quarter (Q4) results. 

The company reported a 45% rise in profits to ₹43 crore, with revenues touching ₹414 crore in Q4. It also achieved its earmarked FY25 guidance, reporting its highest-ever annual income of ₹1158 crore. 

Netweb’s AI systems segment was the key performer, growing 112% year-on-year and contributing 14.8% to total revenue.

SEBI-registered advisors see the potential for further movement — but not without caveats.

Priyank Sharma identifies ₹1,542 as a significant support level. Adding that a breakout above ₹1,680 could propel the stock toward the ₹1,877–₹2,100 range in the short term, with invalidation at ₹1,450. 

He also notes that ₹2,100 may act as a strong resistance, and further strategy will depend on the price reaction at ₹2,108. 

However, Sharma outlines two possible scenarios:

1. A sustained move above ₹1,680 reaching ₹2,108 could trigger a bullish breakout to all-time highs.
   
2. A rally followed by rejection could push the stock to new lows in 2025, creating a long-term buying opportunity below ₹1,150.

Rajiv Gupta, another SEBI-registered advisor, notes that the stock has already hit an earlier target of ₹1,600 and is now trading in the next zone of ₹1,680–₹1,700, with the upper circuit near ₹1,707.

Data on Stocktwits shows that retail sentiment on this counter turned ‘extremely bullish’ a week ago amid high message volumes.

 Still, Netweb shares have fallen 40% year to date. 

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