Network People Services Technologies Ltd Drops 10.28%: 5 Key Factors Behind the Sharp Decline

Feb 09: Strong Intraday Surge Signals Short-Term Strength

Network People Services Technologies Ltd opened the week on a robust note, surging 12.65% to close at Rs.1,459.00, significantly outperforming the Sensex’s 1.04% gain to 37,113.23. The stock touched an intraday high of Rs.1,390, marking a 7.32% rise from the previous close, and demonstrated notable volatility with a 6.33% intraday weighted average price fluctuation. This performance was well above the Computers - Software & Consulting sector and broader market indices, signalling strong short-term momentum.

Despite this surge, the stock remained below its longer-term moving averages, indicating resistance at medium to long-term levels. The MarketsMOJO Mojo Score stood at 34.0 with a Sell rating, upgraded from Strong Sell, reflecting cautious optimism amid the rally.

Feb 10-11: Profit Taking Triggers Consecutive Declines

Following the strong start, the stock corrected over the next two sessions. On 10 Feb, it declined 2.51% to Rs.1,422.45 despite the Sensex gaining 0.25%. The downward trend continued on 11 Feb with a 3.47% drop to Rs.1,373.10, while the Sensex edged up 0.13%. These declines reflected profit-taking and a reversion from the prior day’s gains, with volumes moderating and the stock beginning to test support levels.

Feb 12: Sharp Intraday Low Amid Mixed Financial Results

On 12 Feb, Network People Services Technologies Ltd faced significant price pressure, closing down 10.28% at Rs.1,232.00 with an intraday low of Rs.1,251. The stock’s 7.02% intraday drop and 7.5% volatility outpaced the sector’s 4.43% decline and the Sensex’s 0.56% fall, signalling company-specific weakness. This marked the third consecutive session of losses, pushing the stock below all key moving averages and indicating sustained selling pressure.

However, the day also saw the release of strong quarterly results for the December 2025 quarter. The company reported record quarterly net sales of ₹52.62 crores, PBDIT of ₹14.19 crores, and net profit of ₹11.54 crores, with EPS rising to ₹5.53. This represented a marked turnaround from prior quarters, improving the financial trend score from -11 to +9. Despite this, the nine-month PAT declined 26.56% year-on-year, reflecting mixed annual performance.

The MarketsMOJO Mojo Score was upgraded to 54.0 with a Hold rating, reflecting cautious optimism amid the financial turnaround despite recent price weakness.

Feb 13: Technical Momentum Shift Drives Further Decline

The week closed with a sharp 5.68% drop on 13 Feb, with the stock settling at Rs.1,162.00. Technical indicators signalled a shift from sideways to mildly bearish momentum, with a bearish MACD on the weekly chart and weakening price action. The stock’s intraday range of Rs.1,220 to Rs.1,389.70 reflected heightened volatility, while the Relative Strength Index remained neutral, suggesting limited immediate oversold conditions.

Other technical tools presented mixed signals: the weekly Dow Theory remained mildly bullish, but the monthly reading was bearish. On-Balance Volume showed mild bullishness, indicating some volume support despite price declines. The MarketsMOJO Mojo Score was downgraded to 48.0 with a Sell rating, reflecting ongoing uncertainty and technical challenges.

The stock’s underperformance relative to the Sensex and sector highlights elevated downside risks in the near term, with key support near Rs.1,140.25 needing to hold to prevent further losses.

Daily Price Comparison: Network People Services Technologies Ltd vs Sensex

Key Takeaways

Positive Signals: The company’s record quarterly revenue and profit figures for Q3 FY26 indicate a strong operational turnaround, with net sales reaching ₹52.62 crores and net profit at ₹11.54 crores. The improved financial trend score and upgraded Mojo Grade to Hold reflect this progress. The initial surge on 09 Feb demonstrated the stock’s capacity for short-term strength and outperformance relative to the sector and Sensex.

Cautionary Signals: Despite the quarterly turnaround, the nine-month PAT decline of 26.56% and the sustained price weakness over the week highlight ongoing challenges. The stock’s fall of 10.28% over the week significantly outpaced the Sensex’s 0.54% decline, underscoring company-specific pressures. Technical indicators have shifted to a mildly bearish stance, with the stock trading below all major moving averages and a bearish MACD on the weekly chart. Elevated volatility and underperformance relative to sector peers suggest downside risks remain elevated.

Conclusion

Network People Services Technologies Ltd’s week was marked by a sharp reversal from a strong opening surge to a pronounced decline, closing 10.28% lower at Rs.1,162.00. The company’s strong quarterly results provide a foundation for cautious optimism, yet the broader annual performance and technical momentum signal ongoing headwinds. The downgrade to a Sell mojo grade amid bearish technical indicators suggests investors should monitor key support levels closely. While the stock has demonstrated resilience in parts of the week, the overall trend remains fragile, reflecting a complex interplay of fundamental recovery and technical pressure.

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