ETERNAL - IntraDay Trade Analysis with Live Signals

Last Updated Time : 20 Dec 25, 07:02 am

IntraDay Trade Rating: 3.3

📊 Analysis: ETERNAL shows weak intraday potential due to bearish technicals. Current price (₹286) is below the 50 DMA (₹305) and near the 200 DMA (₹287), reflecting short-term weakness. RSI at 38.0 suggests the stock is approaching oversold territory, while MACD (-6.68) confirms bearish momentum. Volume (1.53 Cr.) is significantly lower than the weekly average (3.03 Cr.), indicating reduced intraday participation.

💡 Optimal Buy Price: ₹282–₹286 (near support zone).

🎯 Profit Exit Levels: ₹292 (first resistance), ₹298 (second resistance).

🛡️ Stop-Loss: ₹278 (below intraday support).

⏱️ If Already Holding: Exit intraday if price fails to sustain above ₹286 with weak momentum or if volume continues to stay below average. Consider booking profits near ₹292–₹298 if momentum improves during the session.

Positive

• 📈 Quarterly PAT growth from ₹602 Cr. to ₹691 Cr. (64.1% variation).
• 💰 DII holding increased by 3.55%, showing strong domestic investor confidence.
• 📊 Low debt-to-equity (0.01) ensures financial stability.

Limitation

• ⚠️ High P/E (117) compared to industry average (42.2), suggesting extreme overvaluation.
• 📉 Weak ROCE (7.34%) and ROE (6.55%) indicate poor capital efficiency.
• 🔻 MACD negative signals bearish short-term momentum.
• 📊 Low trading volume reduces intraday strength.
• 🌍 FII holding decreased by 3.30%, showing foreign investor exit pressure.

Company Negative News

• 📰 No major negative news reported, but valuation concerns and weak efficiency metrics weigh on sentiment.

Company Positive News

• 📰 Strong quarterly profit growth supports positive sentiment despite valuation concerns.
• 📊 DII inflows add confidence to fundamentals.

Industry

• 🏭 Sector trading at PE 42.2, far lower than ETERNAL’s valuation.
• 📈 Industry demand supported by broader market expansion and domestic consumption trends.

Conclusion

⚖️ ETERNAL is fundamentally overvalued with weak efficiency metrics, despite strong quarterly profit growth. Intraday trading opportunity is limited due to bearish momentum and low volume. Cautious entry near ₹282–₹286 with profit exits at ₹292–₹298 is possible, but strict stop-loss at ₹278 is essential.

Would you like me to extend this into a peer benchmarking overlay comparing ETERNAL against other high-valuation sector stocks, or should we focus on basket rotation signals for intraday workflow optimization?