Trade Idea of The Day - Eternal Limited Target Rs. 12 - Religare Broking Ltd
Eternal Limited
BUY 30 JUN 235 PUT Entry Range 6 – 7 Target Range 12 Stop Loss 4
Rationale
• On the daily timeframe ETERNAL continue to trade under pressure as prices remain below the crucial 50-DEMA zone near 250, reflecting a weak broader trend. Every pullback towards the resistance zone is witnessing selling pressure, keeping the bearish undertone intact.
• Technically, the stock prices has been forming lower highs on the daily chart, indicating lack of buying conviction. Sustained trading below 245 may further drag the stock towards the 235-230 support zone in the coming sessions.
• Momentum indicators also favour the bears, as RSI is hovering near the 45 mark with a negative bias, while MACD remains in the weak territory, suggesting limited upside potential and continuation of consolidation with negative bias.
• Overall, traders are advised to adopt a “sell on rise” strategy until the stock decisively closes above the 250 resistance zone, as the prevailing setup continues to favour cautious trading sentiment.
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SEBI Registration number is INZ00017433
