logo
How to trade Eternal shares after a 34% rally? Check key levels & strategies

How to trade Eternal shares after a 34% rally? Check key levels & strategies

Economic Times17-07-2025
Eternal shares have surged 34% since April, fueled by investor optimism, but analysts suggest caution.
Synopsis Eternal shares have surged 34% since April, fueled by investor optimism, but analysts suggest caution. Profit booking is advised near Rs 260 due to potential momentum loss, while others see buying opportunities above Rs 278 or near the Rs 240-Rs 235 support zone. Long-term investors should hold, adding on dips above Rs 245. Eternal shares have rallied nearly 34% from their April lows, currently trading around Rs 262, driven by investor optimism. The stock is also placed above its medium and long-term daily exponential moving averages.
ADVERTISEMENT While the broader trend of the stock remains positive, the recent rally has been sharp and impressive.
According to Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, traders should consider booking profits at current levels.
He highlighted that the stock "appears to be exhausted after a sharp rally of 42.58% from the recent bottom of Rs 194.80, currently trading near Rs 262." Patel warned that the daily RSI is showing negative divergence, indicating a potential loss of momentum.He added that a close below Rs 260 may trigger further downside toward Rs 250." Based on this, short-term traders are advised to exit positions or adopt a cautious approach near Rs 260.
ADVERTISEMENT Offering a tactical view, Hardik Matalia, Derivative Analyst at Choice Broking, suggested that traders could look for buying opportunities if the stock shows signs of reversal from the current support zone or breaks above Rs 278.He noted that, 'Eternal is forming a structure of higher highs and higher lows on the daily chart—indicating the emergence of bullish sentiment." Matalia explained that technically, a sustained move above Rs 278 would confirm a breakout and could pave the way for a rally toward its previous record highs.
ADVERTISEMENT For traders with a momentum focus, Matalia advised, "Short-term traders are advised to look for buying opportunities either on signs of reversal from the current demand zone or post-breakout above Rs 278 for momentum-based trades."
Also read: Don't peg your expectations from market too high; look for growth stories: Shreyas Devalkar
Long-term investors holding the stock are recommended to stay invested and consider adding on dips, as long as the stock holds above Rs 245.
ADVERTISEMENT
From a technical perspective, Shitij Gandhi, Sr. Research Analyst (Technicals) at SMC Global Securities, highlighted that the Rs 275–Rs 280 zone represents a significant resistance area.Gandhi noted that the stock has been on a steady upward trajectory in recent weeks, rallying from the Rs 200 level to around Rs 275, but a fresh leg of upside momentum is expected to emerge only after a decisive breakout above the Rs 280 resistance level.
ADVERTISEMENT On the downside, Gandhi identified solid support near the Rs 240–Rs 235 range, suggesting that traders could watch these levels for potential buying opportunities if the stock pulls back.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained
Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms
Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips
L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first?
Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more
SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders
API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading
Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains
Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains
NEXT STORY
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

10 year yield spikes amid a decline in bets on August rate cut
10 year yield spikes amid a decline in bets on August rate cut

Economic Times

time24 minutes ago

  • Economic Times

10 year yield spikes amid a decline in bets on August rate cut

Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Yields of the 10-year benchmark government security spiked six basis points to 6.37% on Friday, before softening slightly and closing at 6.34%.The spike in yields came after the central bank governor said price stability will be the primary concern for the central bank amid cooling retail inflation, despite Mint Road winning the 'battle' against 10-year yield had closed at 6.31% the previous day.A section of the market started pricing in another rate cut in August after India's retail inflation, as measured by the consumer price index (CPI), hit a six-year low of 2.1%, data released on July 14 change in expectations of the rate cut trajectory also impacted auction of the 10 year paper conducted on Friday, pushing prices below 100 at 99.95, with cut off yield at 6.33%. The auction was for Rs 30,000 crores'When people are not positive about the rate cut next month, why would someone hold the security, they would want to sell,' said a bond trader at a primary dealership. 'There were quite a few people who had priced in a cut in the August policy, but after the interview, markets were not very positive about it,' the trader said.'The battle against inflation is won, but war continues,' RBI Governor Sanjay Malhotra said at a banking summit organised by the newspaper in Mumbai on Friday. 'Our primary objective is to maintain price stability and we have mentioned that it is not inconsistent with the other objectives we have of growth because that is a prerequisite.'This comes just a few days before the monetary policy committee (MPC) is set to announce its rate decision on August 6. During the last MPC meet, the repo rate was reduced by a larger-than-expected 50 basis points to 5.50%'The rates went up because the market was anyway long, and those positions increased after the inflation data. Maybe because inflation was lower, markets thought that the RBI would be more open to further rate cuts in August. The governor today did not say anything different, but maintained what he has said in his previous encounters,' said a senior bond trader at another primary dealership.

Bank of Baroda Q1FY26 results: Net profit up 1.9%, margins compress
Bank of Baroda Q1FY26 results: Net profit up 1.9%, margins compress

Business Standard

time24 minutes ago

  • Business Standard

Bank of Baroda Q1FY26 results: Net profit up 1.9%, margins compress

Public sector lender Bank of Baroda 's (BoB) net profit rose 1.9 per cent year-on-year (Y-o-Y) to Rs 4,541 crore in the first quarter of financial year 2025-26 (Q1FY26), aided by treasury income amid pressure on net interest margin. Sequentially, the net profit fell from Rs 5,048 crore. Net interest income (NII)—the difference between interest earned and interest expended—fell 1.4 per cent Y-o-Y to Rs 11,435 crore. Net interest margin (NIM) from domestic operations fell to 2.91 per cent in Q1FY26, down from 3.18 per cent in Q1FY25. 'Pressure on NII will continue to be there for the next quarter because the transition matrix, both on the asset and liability side, will fully realign in the next quarter and Q3 onwards. Banks may experience lower or negative growth in NII because the cost of deposits will take a bit more time to realign,' said Debadatta Chand, managing director and CEO, Bank of Baroda. Other income, including fees, commission, and treasury earnings, expanded by 88 per cent to Rs 4,675 crore in Q1FY26 from Rs 2,487 crore a year ago. Treasury gains increased to Rs 2,226 crore in the first quarter, compared to Rs 295 crore during the same period last year. 'RAM (Retail, Agri, and Micro, Medium, and Small Enterprises) was at 62.7 per cent because the growth in the corporate loan book was very low at 4.2 per cent, which is expected to increase in the subsequent quarter. However, the bank plans to grow RAM to 65 per cent in the next two to three years,' Chand said. The bank's domestic deposits expanded by 8.1 per cent Y-o-Y to Rs 12.04 trillion. The share of low-cost deposits—current account and savings account (CASA)—stood at 39.33 per cent in June 2025, down from 40.31 per cent a year ago. Going forward, deposit growth is expected to remain around 9-11 per cent. On the credit front, the guidance for FY26 is 11-13 per cent, said Chand. The asset quality profile improved, with gross non-performing assets (NPAs) declining to 2.28 per cent from 2.88 per cent a year ago. The net NPAs declined to 0.60 per cent from 0.69 per cent in June 2024. The provision coverage ratio (PCR), including those for write-offs, stood at 93.18 per cent in June 2025. The lender's capital adequacy ratio stood at 17.19 per cent, with the common equity tier I (CET-1) at 17.61 per cent. On Friday, the BoB stock closed 1 per cent lower at Rs 243.5 per share on the BSE.

TMB's net profit up 6% in Q1, driven by strong lending and deposit growth
TMB's net profit up 6% in Q1, driven by strong lending and deposit growth

Business Standard

time24 minutes ago

  • Business Standard

TMB's net profit up 6% in Q1, driven by strong lending and deposit growth

Thoothukudi-headquartered Tamilnad Mercantile Bank (TMB) has posted its highest-ever quarterly net profit of Rs 304.9 crore during the first quarter of financial year 2025-26, up 6 per cent from Rs 287.3 crore during the April to June quarter of the previous financial year. Total income grew 7 per cent to Rs 1,617 crore during the quarter under review, compared to Rs 1,515 crore in June 2024. 'We have achieved the highest-ever quarterly net profit in Q1FY26, driven by continued growth in our core lending and deposit businesses. We remain committed to our strategic priorities of expanding our reach and enhancing customer experience," said Salee S. Nair, Managing Director and Chief Executive Officer of TMB. The bank's deposits increased to Rs 53,803 crore during the period, up from Rs 49,188 crore last year. Advances also increased to Rs 45,120 crore, reflecting a growth rate of 10.44 per cent on a YoY basis. Net Interest Income for the quarter stood at Rs 580 crore for Q1FY26, compared to Rs 567 crore for Q1FY25, registering a growth rate of 2.29 per cent. The bank's net worth increased to Rs 9,328 crore, up from Rs 8,244 crore last year, reflecting an absolute rise of Rs 1,084 crore, or a growth rate of 13.15 per cent. The RAM (Retail, Agri, and MSME) segment increased to 93.31 per cent for Q1FY26, compared to 92.07 per cent for Q1FY25. "In this year, we have opened 7 new branches in this quarter across key markets, further strengthening our distribution network. We have also entered into several strategic partnerships for the digital transformation of the bank, increasing operational efficiency, and enhancing customer growth. We believe that these strategic initiatives, coupled with our focus on responsible lending and cautious risk management practices, will pave the way for sustainable and profitable growth in the years to come," said Nair.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store