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Eternal Ltd

BUY 30 JUN 245 PUT Entry Range 5 – 6 Target 12 Stop Loss 3

Rationale

1. Despite the recent recovery from lower levels, the ETERNAL continues to trade within a broader falling channel structure, indicating that the primary trend remains weak, so there is no any strong bullish conviction.

2. On the technical front, prices are hovering below the declining long-term moving average, while short-term averages remain flat to negative. This setup suggests that every pullback towards higher levels may attract fresh selling pressure.

3. Volume participation during the recovery phase has remained moderate, highlighting a lack of aggressive buying interest. Unless the stock decisively breaks above the channel resistance, the current bounce is likely to be treated as a relief rally rather than a trend reversal.

4. With the sell on rise approach buying can be initiated in ATM put option near 248-250 with the downside potential of immediate swing below of 235. A breach below this zone could accelerate the fall towards 225-223 in the near term.

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