Technical indicators turn bullish after sharp correction; analysts see ₹310 target
Shares of Eternal Ltd are gaining traction on Dalal Street, with both fundamental strength and technical signals pointing toward a potential near-term rally. The stock touched a two-month high of ₹265.40 following its Q4FY26 results and continues to attract investor interest despite minor profit booking.
At current levels near ₹256, analysts believe the stock could deliver up to 21% upside, with a projected target of ₹310 in the short to medium term.
Earnings Boost Fuels Momentum
The recent rally is backed by strong financial performance:
- Net profit surged 346% YoY to ₹170 crore
- Revenue jumped 196.5% YoY to ₹17,200 crore
- Continued improvement in operational efficiency
The strong Q4 numbers have reinforced confidence among brokerages, many of which have retained a ‘Buy’ rating on the stock.
Price Action: Recovery After Sharp Correction
Eternal Ltd has staged a notable recovery:
- Gained ~24% from March lows of ₹213
- Still down ~8% on a year-to-date basis
- Corrected nearly 42% from its peak of ₹368, creating room for upside
This combination of correction and recovery is often seen as a favorable setup for technical rebound trades.
Technical Setup: Bullish Signals Strengthen
According to analysts at Mirae Asset Sharekhan, the stock is showing multiple bullish indicators:
Key Technical Highlights:
- Higher High–Higher Low pattern on weekly charts (bullish trend structure)
- Trading above 20-DMA (₹249) and 50-EMA (₹251)
- Testing 100-DMA (~₹265) — a key resistance level
- MACD and RSI indicators showing strong positive momentum
These signals suggest that buying interest is strengthening across both short-term and medium-term timeframes.
Target Explained: Fibonacci Retracement in Focus
The ₹310 target is derived from a key technical concept:
- Represents 61.8% Fibonacci retracement of the fall from ₹368 to ₹214
- This level often acts as a strong resistance and profit-booking zone
If the stock sustains above key moving averages and breaks resistance, it could gradually move toward this target zone.
Key Levels to Watch
- Immediate Resistance: ₹265 (100-DMA zone)
- Next Resistance Zone: ₹270–₹310
- Support Levels: ₹249–₹251 (short-term support band)
A decisive breakout above ₹265 could trigger fresh momentum buying.
Brokerage View
Analysts maintain a constructive outlook:
- Positive earnings momentum supports valuation
- Technical structure indicates continuation of uptrend
- Short-term traders may benefit from momentum play
However, investors are advised to monitor resistance levels closely and manage positions accordingly.