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Rakesh Madhav CFA

11th Oct · SEBI-Registered Analyst

ETERNAL: Bullish Momentum Sustains, Eyeing Fresh Highs ⚙️🔥

Technical View:

ETERNAL
extended its upmove, closing at ₹348.3 (+0.8%), marking a clear continuation of its breakout rally. The stock has been steadily forming higher highs and higher lows, staying comfortably above its short-term moving averages. RSI near 68 reflects strong bullish momentum, yet remains below overbought territory — indicating there’s still room for further upside. Immediate support lies at ₹340 and ₹333, while resistance is seen around ₹355–₹360. A decisive breakout above ₹360 could open the next leg toward ₹375–₹385. Price Action Note: The stock is showing trend strength and sustained volume activity, confirming institutional accumulation. The ongoing price structure aligns with a medium-term uptrend channel, where pullbacks have consistently attracted buying support — a sign of confidence among market participants. Fundamental View: Eternal Industries continues to benefit from the rising infrastructure and industrial pipe demand, driven by national-level water and irrigation projects. Its expanding portfolio in PVC, CPVC, and HDPE products, coupled with strategic investments in capacity expansion and distribution, supports strong earnings visibility. Outlook: Momentum remains bullish as long as ₹333 holds. Sustaining above ₹355 can trigger a rally toward ₹375–₹385. Dips toward ₹340–₹335 could provide attractive accumulation opportunities for swing traders and short-term investors

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