Weekly Wrap: ETERNAL Surged 4.49% This Week? Analysis & Key Levels

ETERNAL (formerly Zomato Ltd) is making significant moves on Dalal Street, with the stock surging 4.49% to trade at ₹298.05 this week. After a period of correction, the counter has shown resilience, attracting institutional interest at lower levels.

⚡ The Trigger: What Drove the Move This Week?

The primary catalyst for ETERNAL’s 4.49% surge this week appears to be a wave of positive institutional sentiment and value buying, following a steep 21% correction from its October peaks.

The week was defined by high-profile brokerage notes that validated the company’s long-term growth story, specifically the performance of its quick-commerce arm, Blinkit. Reports from major foreign brokerages, including Morgan Stanley and Bernstein, reiterated confidence in the stock. Morgan Stanley maintained a bullish stance with a target price of ₹427, citing the recent dip as an “attractive buying window” and noting that market share gains remain robust despite competitive intensity. Similarly, Bernstein initiated coverage with an ‘Outperform’ rating, highlighting Blinkit’s trajectory to overtake the core food delivery business in revenue contribution.

Additionally, sector-wide sentiment was buoyed by Bank of America (BofA) upgrading peer Swiggy to a ‘Buy’, which had a positive rub-off effect on ETERNAL. The market looked past the concerns regarding high cash burn and profitability pressures (Q2 net profit had dipped 63% YoY), focusing instead on the 70% YoY revenue growth and the massive scalability of the quick-commerce segment. The surge essentially represents a “relief rally” and accumulation by smart money at psychological support zones.

📉 Technical Setup & Key Levels

Technically, ETERNAL has formed a Bullish Harami or a similar reversal pattern on the weekly charts, bouncing off the critical support zone near ₹285-288. The stock had been trading in a “Lower High, Lower Low” formation for the past month, but this week’s close above the short-term moving averages suggests a potential arrest of the downtrend.

The Relative Strength Index (RSI) has recovered from near-oversold territory (around 35-40) to a neutral-bullish zone, indicating renewed momentum. Volume analysis shows a spike in delivery-based buying on dips, confirming that long-term hands are accumulating. However, the stock faces immediate overhead supply near the ₹310-315 zone, which coincides with previous support-turned-resistance levels.

Level	Price (₹)	Significance
Immediate Resistance	312.00	20-Day Moving Average / Previous Breakdown Zone
Immediate Support	288.50	Weekly Low / Recent Swing Support
Key Resistance	325.00	Major Supply Zone (Psychological Barrier)
Key Support	275.00	200-Day EMA (Critical Long-term Support)

🆚 Peer Comparison

To understand the sector dynamics, we compare ETERNAL with its direct competitor, Swiggy, which also saw significant activity this week.

While ETERNAL surged 4.49%, Swiggy mirrored this positive sentiment, largely driven by the BofA upgrade mentioned earlier. Both stocks are currently benefiting from a “duopoly premium” in the Indian quick-commerce space. However, ETERNAL continues to command a valuation premium due to its proven profitability in the food delivery core and faster scaling of Blinkit compared to Swiggy’s Instamart.

In terms of price action, ETERNAL showed relatively lower volatility this week compared to Swiggy, which reacted more sharply to the specific rating upgrade. ETERNAL’s move was more structural, driven by broad-based accumulation, whereas Swiggy’s move was more news-flow dependent. The synchronized move in both counters suggests that the “Quick Commerce” theme remains a favorite for institutional investors heading into 2026.

🎯 Analyst Verdict (Setup for Next Week)

Disclaimer: This analysis is for educational purposes only and does not constitute SEBI-registered investment advice.

Outlook for Next Week: The setup for ETERNAL has turned cautiously bullish. The defense of the ₹288 support level is a strong signal that the correction might be maturing. For the coming week, traders should watch for a sustained close above ₹300. Reclaiming this psychological mark is essential to invite fresh momentum buying.

If the stock sustains above ₹300, the immediate trajectory could test the ₹312-315 resistance band. Conversely, if the broader market faces selling pressure, the stock must hold ₹288 to maintain the bullish reversal structure. A breach below ₹288 would invalidate the current recovery and could open the door for a retest of the 200-day EMA near ₹275.

Institutional Activity: The flow of news regarding brokerage upgrades suggests that the downside is currently capped by institutional bids. The risk-reward ratio at current levels (₹298) appears favorable for long-term setups, provided strict risk management is maintained below recent swing lows.

Verdict: Accumulation Zone. Watch for stability > ₹300.