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ETERNAL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | ETERNAL | Market Cap | 2,63,165 Cr. | Current Price | 273 ₹ | High / Low | 368 ₹ |
| Stock P/E | 104 | Book Value | 37.1 ₹ | Dividend Yield | 0.00 % | ROCE | 7.34 % |
| ROE | 6.55 % | Face Value | 1.00 ₹ | DMA 50 | 286 ₹ | DMA 200 | 285 ₹ |
| Chg in FII Hold | -2.80 % | Chg in DII Hold | 2.57 % | PAT Qtr | 657 Cr. | PAT Prev Qtr | 691 Cr. |
| RSI | 44.2 | MACD | -5.47 | Volume | 2,15,70,777 | Avg Vol 1Wk | 6,82,12,340 |
| Low price | 190 ₹ | High price | 368 ₹ | PEG Ratio | 2.07 | Debt to equity | 0.01 |
| 52w Index | 46.5 % | Qtr Profit Var | 33.0 % | EPS | 2.62 ₹ | Industry PE | 49.0 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 368 ₹ highs and is consolidating near 273 ₹, showing weakness but holding above 190 ₹ support.
- Moving Averages: Current price (273 ₹) is below both 50 DMA (286 ₹) and 200 DMA (285 ₹), confirming short-term bearishness.
- RSI: At 44.2, the stock is neutral, neither oversold nor overbought.
- MACD: Negative (-5.47), indicating bearish momentum persists.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions but not yet a reversal signal.
- Volume Trends: Current volume (2,15,70,777) is significantly lower than 1-week average (6,82,12,340), showing weak participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, with potential for sideways consolidation.
- Support Zones: 270 ₹ (near-term), 250 ₹ (major support).
- Resistance Zones: 286 ₹ (50 DMA), 300 ₹ (trendline resistance), 320 ₹ (higher resistance).
- Entry Zone: 270–275 ₹ if RSI stabilizes.
- Exit Zone: 286–300 ₹ on rebound; strict stop-loss below 270 ₹.
- Trend Status: Stock is consolidating after correction, awaiting breakout direction.
✅ Positive
- Quarterly PAT at 657 Cr. shows consistent profitability despite slight decline from previous quarter.
- DII holdings increased (+2.57 %), showing strong domestic institutional support.
- Low debt-to-equity ratio (0.01) indicates excellent financial stability.
- Quarterly profit variance (+33.0 %) highlights operational improvement year-on-year.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
- High P/E (104) compared to industry PE (49.0) suggests premium valuation.
- ROCE (7.34 %) and ROE (6.55 %) are relatively low, showing weak capital efficiency.
- No dividend yield (0.00 %) offers no income support.
📉 Company Negative News
- FII holdings decreased (-2.80 %), showing reduced foreign investor confidence.
- MACD remains negative, signaling continued bearish momentum.
📈 Company Positive News
- DII holdings increased (+2.57 %), showing strong domestic institutional support.
- Quarterly profit variance (+33.0 %) highlights operational improvement year-on-year.
🏭 Industry
- Industry PE at 49.0 is much lower than company PE (104), suggesting ETERNAL trades at a significant premium.
- Sector outlook remains stable, with growth potential but valuation concerns.
🔎 Conclusion
- ETERNAL is in a consolidation phase after correction, with neutral RSI but bearish MACD.
- Short-term traders may consider entry near 270–275 ₹ with exit around 286–300 ₹.
- Long-term investors should be cautious due to premium valuations and weak ROCE/ROE, despite strong institutional support and profit growth.