Eternal Ltd Shares Show Mixed Technical Signals Amid Bearish Momentum Shift

Technical Trend Overview and Price Movement

The stock closed at ₹258.65, down from the previous close of ₹276.00, marking a significant intraday drop. The 52-week price range remains broad, with a high of ₹368.40 and a low of ₹189.60, indicating considerable volatility over the past year. Today's trading saw a high of ₹277.25 and a low of ₹257.80, reflecting a bearish intraday momentum.

Technically, the overall trend has shifted from sideways to mildly bearish, signalling a cautious outlook among traders and investors. This shift is corroborated by the weekly and monthly technical indicators, which present a nuanced picture of the stock’s momentum.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart, signalling that the short-term momentum is weakening relative to the longer-term trend. On the monthly chart, the MACD is mildly bearish, suggesting that while the longer-term trend is not strongly negative, it is losing upward momentum.

Complementing this, the Know Sure Thing (KST) oscillator also shows bearish signals on the weekly timeframe and mildly bearish on the monthly, reinforcing the view of a decelerating price momentum. These indicators collectively point to a cautious environment where selling pressure is gradually increasing.

RSI and Overbought/Oversold Conditions

The Relative Strength Index (RSI) presents a contrasting signal. On the weekly chart, the RSI is bullish, indicating that the stock is not currently overbought and may have some underlying strength or potential for a short-term rebound. However, the monthly RSI shows no clear signal, suggesting a neutral stance over the longer term.

This divergence between weekly and monthly RSI readings highlights the complexity of the stock’s momentum, where short-term buying interest may be present despite a broader bearish trend.

Moving Averages and Bollinger Bands

Daily moving averages are mildly bullish, implying that recent price action has shown some upward bias in the short term. This is somewhat at odds with the weekly Bollinger Bands, which are bearish, indicating that price volatility and downward pressure are more pronounced on a weekly basis. The monthly Bollinger Bands remain sideways, reflecting a lack of decisive directional movement over the longer term.

This mixed technical landscape suggests that while short-term traders might find opportunities, the overall trend remains under pressure, warranting caution.

Volume and Dow Theory Signals

On-Balance Volume (OBV) readings are mildly bearish on both weekly and monthly charts, indicating that volume trends are not supporting a strong upward price movement. This suggests that selling pressure is gradually increasing, which could weigh on price performance if sustained.

Dow Theory assessments show no clear trend on the weekly timeframe but mildly bearish signals on the monthly chart. This aligns with the broader technical narrative of a stock facing downward pressure over the medium term, despite some short-term bullish hints.

Comparative Performance Against Sensex

Despite recent weakness, Eternal Ltd has delivered impressive long-term returns relative to the benchmark Sensex. Over the past three years, the stock has surged by 407.16%, vastly outperforming the Sensex’s 33.80% gain. Over one year, the stock returned 16.56%, more than double the Sensex’s 6.56% rise.

However, recent short-term returns have been negative, with a 10.05% decline over the past week and a 9.05% drop over the last month, compared to the Sensex’s more modest declines of 2.43% and 4.66% respectively. Year-to-date, the stock is down 6.94%, underperforming the Sensex’s 4.32% fall. This recent underperformance reflects the technical deterioration and increased bearish momentum.

Mojo Score and Analyst Ratings

Eternal Ltd’s MarketsMOJO score currently stands at 37.0, categorised as a Sell rating. This represents a downgrade from the previous Hold rating on 23 Oct 2025, reflecting the deteriorating technical and fundamental outlook. The company’s market capitalisation grade is 1, indicating a relatively small market cap within its sector.

This downgrade is consistent with the technical signals and recent price action, suggesting that investors should exercise caution and consider the risks of further downside in the near term.

Outlook and Investor Considerations

The technical landscape for Eternal Ltd suggests a cautious stance for investors. While short-term indicators such as the daily moving averages and weekly RSI hint at possible short-lived rebounds, the prevailing weekly and monthly bearish signals from MACD, KST, OBV, and Bollinger Bands indicate that the stock is under pressure.

Investors should weigh the stock’s impressive long-term returns against the recent technical deterioration and underperformance relative to the Sensex. The downgrade in the Mojo Grade to Sell further emphasises the need for prudence.

For those considering entry or exit points, monitoring the evolution of the weekly MACD and OBV indicators will be critical to gauge whether the bearish momentum intensifies or if a reversal is on the horizon. Additionally, the stock’s proximity to its 52-week low of ₹189.60 may offer some support, but the risk of further declines cannot be discounted.

In summary, Eternal Ltd’s current technical profile reflects a stock in transition, with mixed signals that require careful analysis and risk management by investors.

Unlock special upgrade rates for a limited period. Start Saving Now →