ETERNAL (Zomato): Breakdown Below Trendline

ETERNAL (Zomato) had been on a strong bull run since April 2025, rallying from ₹195 to ₹344 🚀. Throughout this journey, the stock consistently respected an upward trendline, bouncing every time it touched the line.

But things changed on 26th September 2025:
❌ The stock broke down below the trendline support for the first time.
After the breakdown, it reached a low of ₹320, signaling that the structure had become weak


✨ 1. Trendline Signals (Daily Chart)
If we connect all the key highs of September 2024, December 2024, August 2025, and September 2025, we obtain a resistance trendline.
Recently, the stock gave a breakout above this trendline, but it failed to sustain and quickly slipped back below it.

This false breakout followed by weakness is often a bearish signal ⚠️.


📅 2. Short-Term View
Right now, the stock is hovering near ₹320, a critical support level.
If ₹320 breaks decisively, the weakness will get confirmed, and the stock may head toward:
🎯 ₹310
🎯 ₹300 (short-term target zone).

Until then, some retracement or sideways movement may happen, but the overall bias is weak.

🕰️ 3. Weekly Chart View (Bigger Picture)
Last week, the stock formed a bearish engulfing candle, where the body of the red candle completely covers the body of the previous green candle.
This pattern is a reversal signal, showing sellers overpowering buyers.

If this week’s close is below ₹320, it will confirm the bearish engulfing pattern ✅, adding further weight to the downside scenario.

📌 Summary:
🔻 Weakness Detected: Breakdown of trendline + false breakout on resistance.
⚠️ Confirmation Needed: Closing below ₹320 will confirm bearish engulfing and continuation of weakness.
🎯 Targets: If ₹320 breaks, next levels are ₹310 and ₹300.
🛡️ If ₹320 holds: Stock may bounce, but the overall structure remains fragile.