Key Events This Week
29 Dec: Sharp open interest surge amid mixed market signals
29 Dec: Shift to mildly bearish momentum on technical indicators
30 Dec: High value trading despite declining momentum and Sell rating
31 Dec: Robust trading activity with mixed technical signals
2 Jan: Technical momentum shifts amid mixed market signals
29 December 2025: Open Interest Surge and Bearish Technical Shift
Eternal Ltd began the week with a notable 11.11% surge in open interest in its derivatives segment, rising from 177,656 to 197,392 contracts. This increase accompanied a modest price gain of 0.48% to Rs.282.95, outperforming the Sensex which declined 0.41% that day. The surge in open interest and strong volume suggested heightened market activity and potential bullish positioning by traders.
However, technical indicators painted a more cautious picture. The stock shifted to a mildly bearish momentum, with the MACD and KST oscillators signalling weakening short-term momentum on weekly and monthly charts. The Relative Strength Index (RSI) remained neutral, indicating no immediate overbought or oversold conditions. Bollinger Bands suggested increased selling pressure on the weekly timeframe, while daily moving averages offered mild support. This divergence highlighted a complex technical environment.
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30 December 2025: High Value Trading Amid Declining Momentum
On 30 December, Eternal Ltd was among the most actively traded stocks by value, with a volume exceeding 40 lakh shares and turnover surpassing ₹112 crore. Despite this liquidity, the stock price declined 2.10% to Rs.277.00, underperforming both the sector and the Sensex, which was nearly flat. Delivery volumes also declined by 12.22%, signalling reduced investor conviction and possible profit booking.
Technically, the stock remained above its 200-day moving average but below shorter-term averages, indicating weakening momentum. The recent downgrade to a Sell rating by MarketsMOJO, with a score of 31.0, reflected growing caution among analysts due to valuation concerns and sector headwinds.
31 December 2025: Robust Trading and Mixed Technical Signals
Eternal Ltd saw a surge in trading activity on 31 December, with volume exceeding 1.59 crore shares and turnover of ₹444 crore. The stock gained 0.34% to close at Rs.277.95, outperforming its sector but slightly lagging the Sensex’s 0.83% gain. Delivery volumes spiked by 190.24%, indicating strong buyer conviction and institutional interest.
Despite this, technical indicators remained mixed. The stock traded above its 200-day moving average but below shorter-term averages, suggesting consolidation. The MarketsMOJO Sell rating persisted, reflecting fundamental concerns despite the strong liquidity and relative outperformance.
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2 January 2026: Technical Momentum Shifts Amid Mixed Signals
On the final day of the week, Eternal Ltd edged up 0.18% to Rs.284.15, supported by mildly bullish daily moving averages. However, weekly and monthly technical indicators remained cautious, with MACD and KST oscillators still bearish and Bollinger Bands signalling sideways to mildly bearish trends. The RSI stayed neutral, indicating a consolidation phase rather than a decisive trend.
The stock’s Mojo Score remained weak at 37.0, consistent with the Sell rating. Market capitalisation grade of 1 and the mixed technical signals suggest heightened volatility and sensitivity to market sentiment. Investors should watch key support near Rs.278 and resistance around Rs.285-290 for potential trend confirmation.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.282.95 | +0.48% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.277.00 | -2.10% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.277.95 | +0.34% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.283.65 | +2.05% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.284.15 | +0.18% | 37,799.57 | +0.81% |
Key Takeaways
Positive Signals: The stock demonstrated resilience by closing the week with a 0.91% gain despite broader market volatility. Delivery volumes surged notably on 31 December, indicating strong institutional interest and buyer conviction. The price remained above the 200-day moving average throughout the week, a long-term bullish indicator. Robust liquidity and high traded values ensured smooth execution for large trades.
Cautionary Signals: Technical momentum shifted to mildly bearish on weekly and monthly charts, with MACD and KST oscillators signalling weakening momentum. The recent downgrade to a Sell rating by MarketsMOJO, with a low Mojo Score of 31.0 to 37.0, reflects fundamental concerns and valuation risks. Delivery volumes declined on 30 December, suggesting some profit booking or reduced conviction. The stock underperformed the Sensex’s 1.35% gain over the week, highlighting relative weakness.
Conclusion
Eternal Ltd’s week was characterised by mixed signals, with active trading and institutional participation contrasting against cautious technical indicators and a Sell rating. While the stock managed a modest weekly gain, it lagged the broader market’s stronger performance. The surge in open interest and delivery volumes at times points to underlying strength, but the prevailing technical momentum and fundamental assessments counsel prudence. Investors should monitor key support and resistance levels closely and consider the broader sector dynamics before adjusting exposure to Eternal Ltd in the near term.
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