Stock Performance and Market Context
Eternal Ltd, currently trading at ₹250.60, has been on a downward trajectory, losing 12.84% over the past eight consecutive sessions. This decline has outpaced the sector’s performance, with the stock underperforming its peers by 1.32% today. The company’s shares are trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained bearish momentum. Despite this, investor participation has notably increased, with delivery volumes on 25 February reaching 7.31 crore shares, a 231.65% rise compared to the five-day average, suggesting heightened interest at current price levels.
Call Option Activity: Strike Prices and Volumes
The most active call options for Eternal Ltd are concentrated around strike prices of ₹250, ₹255, ₹260, ₹270, and ₹280, all expiring on 30 March 2026. The highest number of contracts traded was at the ₹255 strike, with 4,612 contracts exchanged, generating a turnover of approximately ₹1071.44 lakhs. Close behind, the ₹260 strike saw 3,863 contracts traded, with a turnover of ₹728.81 lakhs. The ₹250 strike also attracted substantial activity, with 3,496 contracts and a turnover exceeding ₹1,058 lakhs.
Interestingly, the ₹280 strike, which is significantly out-of-the-money given the current underlying price, recorded 2,600 contracts with an open interest of 4,190, the highest among all strikes. This elevated open interest at a higher strike price suggests a bullish positioning by some market participants, anticipating a strong upside move in the coming weeks.
Open Interest and Turnover Insights
Open interest figures further illuminate the market’s stance. The ₹280 strike’s open interest of 4,190 contracts is notably higher than the ₹255 strike’s 2,522 and the ₹260 strike’s 3,642, indicating that traders are holding onto bullish bets at these levels. The ₹270 strike also shows a healthy open interest of 2,772 contracts. The combination of high turnover and open interest at these strikes points to active positioning ahead of the expiry, with investors possibly hedging or speculating on a rebound beyond the current price.
Mojo Score and Analyst Ratings
From a fundamental perspective, Eternal Ltd’s Mojo Score stands at 31.0, reflecting a Sell rating, downgraded from Hold on 23 October 2025. The company’s market cap grade is 1, indicating a large-cap status but with limited positive momentum. This downgrade aligns with the stock’s recent price weakness and technical indicators, suggesting caution for investors. The bearish sentiment is further underscored by the stock’s inability to sustain levels above key moving averages, which often serve as resistance points in downtrends.
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Investor Sentiment and Expiry Patterns
The expiry date of 30 March 2026 is attracting considerable attention, with call option volumes suggesting a mix of speculative and hedging strategies. The clustering of activity around the ₹250 to ₹280 strikes indicates that traders are bracing for volatility, with some betting on a recovery above the current ₹250.60 price point. The high open interest at the ₹280 strike, despite being nearly 12% above the current price, reflects optimism among a subset of investors who anticipate a strong rally in the medium term.
Conversely, the substantial turnover at the ₹250 and ₹255 strikes, which are close to the current market price, may represent protective calls or short-term speculative plays. This duality in strike price interest highlights the market’s uncertainty, balancing between cautious optimism and risk management.
Liquidity and Trading Viability
Eternal Ltd’s liquidity profile supports active trading, with a 5-day average traded value sufficient to accommodate trade sizes up to ₹28.5 crore. This liquidity ensures that both institutional and retail investors can execute sizeable trades without significant market impact, facilitating the observed high volumes in the options market.
Sector and Market Comparison
Within the E-Retail and E-Commerce sector, Eternal Ltd’s recent underperformance contrasts with a sector return of 1.12% today and a Sensex gain of 0.24%. This divergence underscores company-specific challenges, possibly linked to operational or competitive pressures. However, the active call option interest may signal that some investors view the current weakness as a buying opportunity, expecting a turnaround aligned with broader sectoral growth trends.
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Outlook and Investor Considerations
Given the current technical and fundamental backdrop, investors should approach Eternal Ltd with caution. The downgrade to a Sell rating and the stock’s failure to break above key moving averages suggest limited near-term upside. However, the robust call option activity, especially at higher strike prices, indicates that some market participants are positioning for a potential recovery by the March expiry.
For investors considering exposure, it is crucial to monitor price action closely, particularly around the ₹255 to ₹280 strike range, as these levels are focal points for market sentiment. Additionally, the elevated delivery volumes and liquidity provide opportunities for tactical trades, but the prevailing downtrend warrants disciplined risk management.
In summary, Eternal Ltd’s options market reveals a nuanced picture: while the stock struggles on the price front, the call option interest suggests pockets of bullish speculation. This dynamic makes it a stock to watch closely in the coming weeks as expiry approaches and market conditions evolve.
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