Technical Momentum Shifts to Bearish
Recent technical analysis reveals that Eternal Ltd’s momentum has shifted from mildly bearish to outright bearish. The Moving Average Convergence Divergence (MACD) indicator, a widely used momentum oscillator, shows a bearish stance on the weekly chart and remains mildly bearish on the monthly timeframe. This suggests that the stock’s short-term momentum is weakening, with the potential for further downside pressure.
The Relative Strength Index (RSI), however, remains neutral with no clear signal on both weekly and monthly charts, indicating that the stock is neither overbought nor oversold at present. This lack of directional RSI signal adds to the uncertainty surrounding the stock’s immediate price action.
Moving Averages and Bollinger Bands Confirm Downtrend
Daily moving averages have turned bearish, reinforcing the negative momentum. The stock is trading below its key moving averages, which often acts as resistance in a downtrend. Meanwhile, Bollinger Bands on the weekly chart are signalling bearish conditions, with the price gravitating towards the lower band, suggesting increased volatility and downward pressure. On the monthly scale, Bollinger Bands remain sideways, indicating a lack of strong directional movement over the longer term.
Additional Technical Indicators Paint a Mixed Picture
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, is bearish on the weekly chart and mildly bearish monthly, further supporting the short-term negative outlook. Conversely, the Dow Theory analysis presents a mildly bullish signal on the weekly timeframe but mildly bearish on the monthly, highlighting some divergence in trend interpretation depending on the timeframe considered.
On-Balance Volume (OBV), a volume-based indicator used to confirm price trends, shows a mildly bullish trend on the weekly chart but no clear trend on the monthly scale. This suggests that while there is some buying interest in the short term, it is not strong enough to reverse the prevailing bearish momentum.
Price Performance and Market Context
Eternal Ltd’s current price of ₹271.95 is down from the previous close of ₹277.30, with intraday trading ranging between ₹270.00 and ₹279.75. The stock remains significantly below its 52-week high of ₹368.40 but comfortably above its 52-week low of ₹189.60, indicating a wide trading range over the past year.
When compared with the broader market, Eternal Ltd’s returns have been mixed. Over the past week, the stock has underperformed the Sensex, falling 8.71% against the benchmark’s 1.41% decline. Over the past month, the stock’s loss of 3.31% also exceeds the Sensex’s 0.90% drop. Year-to-date, however, Eternal Ltd has outperformed the Sensex, with a modest decline of 2.16% compared to the Sensex’s 3.19% fall.
Longer-term returns remain impressive, with a one-year gain of 16.17% compared to the Sensex’s 8.64%, and a remarkable three-year return of 424.49% versus the Sensex’s 35.24%. These figures underscore the company’s strong growth trajectory over the medium term despite recent technical setbacks.
Mojo Score Downgrade Reflects Growing Caution
Reflecting the deteriorating technical and fundamental outlook, Eternal Ltd’s Mojo Score has been downgraded from Hold to Sell as of 23 October 2025. The current Mojo Score stands at 31.0, with a Mojo Grade of Sell, signalling increased risk and a cautious stance for investors. The company’s Market Cap Grade remains at a low 1, indicating limited market capitalisation strength relative to peers.
Implications for Investors
The confluence of bearish technical indicators and the downgrade in mojo rating suggests that investors should exercise caution with Eternal Ltd shares in the near term. The bearish MACD and moving averages indicate that the stock may face further downward pressure, while the neutral RSI and mixed volume signals imply that a clear reversal is not imminent.
Investors with a medium to long-term horizon may find value in the company’s strong historical returns and sector positioning, but short-term traders should be wary of the current technical weakness. Monitoring key support levels near ₹270 and the 52-week low of ₹189.60 will be critical to gauge the stock’s resilience.
Overall, Eternal Ltd’s technical profile suggests a cautious approach, with a preference for risk management and close observation of momentum indicators before committing to fresh positions.
