Monday Watchlist: Why ETERNAL Could Breakout This Monday? Analysis & Key Levels

ETERNAL (formerly Zomato Limited) is making significant moves on Dalal Street, with the stock positioned for a 2.44% gain to trade at ₹298.05 heading into next week. As the Quick Commerce giant stabilizes after its October correction, technical indicators suggest a renewed accumulation phase.

⚡ The Trigger: What Drove the Move Heading into Next Week?

The move appears driven by technical factors and volume dynamics, with no specific news hitting the wire over the weekend. ETERNAL’s Friday close of ₹298.05 (+2.44%) was significant as it challenged the psychological ₹300 barrier.

The primary driver for this momentum is a 14-day moving average crossover confirmed during Friday’s session, a classic technical signal often associated with short-term trend reversals. After correcting approximately 21% from its October peak of ₹368.45, the stock has found a demand zone near ₹280-285. Friday’s price action, which saw a day high of ₹299.00, indicates that bulls are inching ahead, absorbing supply that previously triggered sell-offs.

Institutional flows also appear to be stabilizing. While Q2 earnings (reported in October) showed a PAT slip which dampened sentiment, the market seems to have priced in these operational headwinds. The current buying interest suggests a “value-hunting” approach by DIIs, positioning for a pre-budget rally in the consumption space. With no negative regulatory updates or adverse block deals reported this weekend, the setup remains purely technical and momentum-driven for Monday.

📉 Technical Setup & Key Levels

ETERNAL is currently forming a higher-low structure on the hourly charts, a precursor to a potential breakout. The Relative Strength Index (RSI) is recovering from oversold territory and is currently trending neutral-to-bullish, suggesting there is room for upside before the stock becomes overbought.

The immediate hurdle is Friday’s high of ₹299.00. A sustained trade above this level could trigger short-covering, pushing the stock towards the ₹310 zone. Conversely, the ₹288-290 zone acts as a critical support floor; holding this level is essential to maintain the bullish structure.

Level	Price (₹)	Significance
Immediate Resistance	299.00	Friday’s Day High & Psychological Barrier
Immediate Support	290.00	Round Number Support & Intraday Pivot
Key Resistance	310.00	Major Supply Zone / 50-DMA Resistance
Key Support	283.25	Previous Close / Critical Swing Low

🆚 Peer Comparison

When stacked against its primary sector peer, Swiggy, ETERNAL shows a divergent trend. While Swiggy has seen recent analyst upgrades citing improved margins and quick-commerce dominance, ETERNAL has faced pressure due to its legacy valuation premiums.

However, heading into next week, ETERNAL appears to be playing catch-up. While Swiggy has outperformed in the last month due to positive brokerage notes, ETERNAL’s valuation has moderated to more attractive levels (P/E ~121x vs historical highs). The market cap of ₹2.87 Lakh Crore reflects its leadership position, but the relative underperformance over the last quarter (down ~7%) compared to the broader Nifty IT/Tech index makes it a candidate for mean reversion. Investors are likely rotating capital back into the market leader as it approaches key support zones.

🎯 Analyst Verdict (Key Levels to Watch Monday)

Bullish Setup: The setup for Monday is cautiously optimistic. The BREAKOUT TRIGGER is clearly defined at ₹299.00.

• Entry Strategy: Momentum traders should watch for a high-volume opening above ₹299.00. Sustaining above this level for the first 15 minutes confirms buyer dominance and opens the path toward ₹305-310.
• Caution Zone: If the stock fails to clear ₹299 and slips below ₹290.00, the bullish momentum is invalidated. In that scenario, the stock is likely to consolidate further in the ₹285-290 range.
• Verdict: ETERNAL is a “Watch” for a breakout play. The risk-reward ratio favors the bulls only above the ₹299 threshold. Avoid aggressive entries if the stock opens flat and struggles to cross Friday’s high.