Eternal Ltd Falls 8.37%: 7 Key Factors Driving the Week’s Downtrend

23 February 2026: High Volume Amid Persistent Downtrend and Rising Open Interest

On 23 February, Eternal Ltd recorded one of the highest trading volumes of the week with over 1.7 crore shares traded, yet the stock price declined by 0.32% to close at Rs.268.10. This volume surge was accompanied by a 13.96% increase in open interest in the derivatives segment, signalling heightened market activity despite bearish price momentum. The stock traded below all key moving averages, reflecting sustained selling pressure and weak investor confidence. Delivery volumes declined sharply, indicating reduced conviction among long-term holders. The company’s Mojo Score stood at 31.0 with a Sell rating, reinforcing the cautious outlook.

24 February 2026: Intraday Low and Heavy Volume Amid Intensifying Downtrend

Eternal Ltd’s stock price fell sharply by 5.28% on 24 February, hitting an intraday low of Rs.259.25. The stock underperformed both its sector and the Sensex, which declined by 0.78%. Trading volume remained elevated at over 1.46 crore shares, with delivery volume increasing by 63.39% compared to the recent average. Open interest surged further by 16.6%, reflecting increased bearish positioning in derivatives markets. The stock continued to trade below all major moving averages, extending its losing streak to six days with a cumulative loss exceeding 10%. The downgrade to a Sell rating and low Market Cap Grade of 1 compounded investor concerns.

25 February 2026: Continued Downtrend Despite Sector Outperformance and Elevated Open Interest

On 25 February, Eternal Ltd’s stock price declined by 1.46% to Rs.250.25, extending its seven-day losing streak with an 11.55% drop over this period. The stock underperformed the broader E-Retail/E-Commerce sector, which gained 2.11%, and the Sensex, which rose 0.57%. Trading volume remained high at nearly 1.2 crore shares, with delivery volume surging 185.29% compared to the five-day average. Open interest increased by 11.0%, indicating sustained derivatives market activity. The stock remained below all key moving averages, and the Mojo Score and Sell rating continued to reflect deteriorating fundamentals and technical weakness.

26 February 2026: Exceptional Volume and Delivery Spike Amid Persistent Bearish Trend

Eternal Ltd emerged as one of the most actively traded stocks on 26 February, with total volume exceeding 2.2 crore shares and delivery volume soaring by 231.65% compared to the recent average. Despite this, the stock price declined by 1.54% to Rs.246.40, underperforming its sector by 1.32%. The stock remained below all major moving averages, signalling a strong downtrend. The elevated delivery volume suggests selective accumulation by some investors, though the overall technical and fundamental outlook remains cautious. The company’s market capitalisation stood at ₹2,41,982.54 crores, with a Mojo Score of 31.0 and a Sell rating.

27 February 2026: Volume Surge and Modest Price Recovery Suggest Potential Trend Reversal

On the final trading day of the week, Eternal Ltd recorded a significant volume surge of 1.64 crore shares, with delivery volume rising by nearly 300% compared to the five-day average. The stock closed at Rs.246.45, a modest gain of 0.02%, outperforming the Sensex’s 1.16% decline. This volume spike and price resilience may indicate early signs of a trend reversal after eight consecutive days of decline. However, the stock remains below all key moving averages, and the Mojo Score and Sell rating continue to reflect caution. The large market capitalisation and robust liquidity support active trading, but confirmation of a sustained recovery will require further price strength and fundamental improvements.

Daily Price Comparison: Eternal Ltd vs Sensex (23–27 Feb 2026)

Key Takeaways

Persistent Downtrend: Eternal Ltd endured an eight-day losing streak, culminating in an 8.37% weekly decline, significantly underperforming the Sensex’s 0.96% fall. The stock consistently traded below all major moving averages, signalling entrenched bearish momentum.

Exceptional Volume and Delivery Activity: The week saw multiple days of exceptional trading volumes, with delivery volumes surging by over 230% on 26 February. This suggests heightened investor participation, with a mix of distribution and selective accumulation evident.

Derivatives Market Positioning: Sharp increases in open interest—up to 16.6% on 24 February—indicate active bearish positioning through short selling and put buying. The large notional values in options contracts point to complex hedging and speculative strategies amid expected volatility.

Sector and Market Context: Eternal Ltd underperformed its E-Retail/E-Commerce sector peers, which showed resilience and occasional gains during the week. This divergence highlights company-specific challenges amid broader sector headwinds.

Rating and Fundamental Concerns: The company’s Mojo Score of 31.0 and Sell rating, downgraded in October 2025, reflect deteriorating fundamentals and cautious analyst sentiment. The low Market Cap Grade of 1 further emphasises valuation and growth concerns.

Potential Early Signs of Reversal: The volume surge and modest price recovery on 27 February may signal initial accumulation and a tentative trend reversal. However, confirmation requires sustained price strength and a break above key moving averages.

Conclusion

Eternal Ltd’s week was characterised by sustained selling pressure, heavy trading volumes, and increasing bearish positioning in derivatives markets. Despite the stock’s large-cap status and robust liquidity, technical and fundamental indicators remain weak, underscoring a cautious outlook. The recent surge in delivery volumes and the modest price uptick on the final trading day offer tentative signs of investor interest and potential stabilisation. However, the stock’s continued trading below all major moving averages and the prevailing Sell rating counsel prudence. Market participants should closely monitor price action and volume trends in the coming sessions to assess whether a more definitive recovery is underway or if the downtrend will persist.

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