ETERNAL - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.2

📊 Technical & Momentum Analysis

Breakout Zone: Current price ₹338 is right at the 52-week high (₹339), suggesting a breakout attempt.

Momentum Indicators: RSI at 69.1 is nearing overbought territory; MACD at 6.56 is positive but not aggressive.

Volume Surge: Massive volume (3.77 Cr) vs 1-week average (2.21 Cr) confirms strong participation—likely institutional or speculative interest.

Trend Confirmation: Price is well above both 50 DMA (₹307) and 200 DMA (₹265), confirming bullish structure.

📈 Fundamental Snapshot

Valuation Risk: P/E of 155 vs industry average of 37.7 and PEG of 3.09 signals extreme overvaluation.

Low Capital Efficiency: ROCE 7.34%, ROE 6.55%—weak for a company of this size.

Zero Yield: No dividend cushion for holding periods.

Profit Growth: PAT grew from ₹582 Cr to ₹602 Cr (+27.3%)—respectable, but not enough to justify valuation.

Institutional Sentiment: FII reduced stake (-2.02%) while DII increased (+3.02%)—mixed signals.

🎯 Trade Strategy

🔹 Optimal Entry Price

₹305–₹310: Ideal pullback zone near 50 DMA. Avoid chasing at highs unless RSI cools below 60 and MACD accelerates.

🔹 Exit Strategy (If Already Holding)

₹338–₹345: Current zone is near resistance. Consider partial exit if RSI crosses 72 or MACD flattens.

Trailing Stop: ₹322 to protect gains.

🧠 Summary

ETERNAL (Zomato) is in a technical breakout but carries heavy valuation and efficiency risks. It’s suitable for short-term momentum trades, not sustained swings. Entry near 50 DMA offers better risk-reward, while current levels demand caution.

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