Starting with the big picture
If you are an Eternal (as Zomato used to be known) owner, then you know that shares rarely move quietly around earnings. This week was no exception. Despite the fact that its second-quarter revenue grew about 78% YoY, the stock was trading at ₨32.20 down 2.45% to unveil near ₹312 on October 21st. Why the cold reaction? Some of that is the market.
Our Nifty 50 and rupee analysis shows Indian equities have been soft, and foreign investors, who hold about 29% of Eternal, have not been in a buying mood. Let’s look at the chart to see where that leaves you.
Chart note: markers are reported closing prices from market-data pages and the dashed line only joins them; it is not a tick-by-tick history. The October 21 candle uses the reported open, high, low and close.
Walking Through the Chart
Start with the deep-red theme. The x-axis runs from the end of July 2023 until October 2026; the y-axis ranges from ₹270 to ₹355. The four closed red markers connected by a dotted line are reported closes: ₹284.40 on July 22; ₹310.65 on July 31, and ₹316.80 on September 17and ₹320.20 on October 19 Which is an increase of roughly 12.6% in three months, not too shabby staircase to be all the way up.
Then, one single red candle on the right towards October 21. It opened high at ₹323 from where it went to price level of ₹325 continued its down momentum and fell to price level of ₹306 and finally closed the trade end by leveling itself at 312.35.
The red body says sellers won the day, much like the FII selling that weighed on India last month, while the long lower shadow says buyers stepped in near ₹306.
Those horizontal bands are your playing cards. This dark-red band also represents the 52-week highs at ₹344 to ₹346. Nearer resistance is the orange band at ₹325 to ₹327, which capped both October sessions. The green dash-dot lines mark the support at ₹306, the October 21 low and at ₹285, near the late-July base. The spacing between each horizontal division is Rs. 10 to help you gauge distances, while the gap-up reversal is clearly identified with a call-out box.
What You Could Do from Here
A failed gap-up is a warning, not a death sentence if you already have shares. A sustained move back to above ₹325 would get momentum back in the, and reopen the path towards 345. It closes daily below ₹306; we bet on ₹285, i.e. 9% lower. If you are considering buying, wait for one of those signals instead of trying to predict. Keep position sizes small as valuation is stretched with trailing P/E well over 600.
Watch the rupee too, since our USD/INR analysis on RBI Defence and capital flows shows how currency moves can steer foreign money.
A simple example: buying near ₹312 with a stop below ₹306 risks about ₹6 per share for a first target near ₹325, about ₹13 higher. The three-month gain of about 9% is encouraging, but the one-month fall near 7% shows momentum fading, and sentiment may stay shaky if GIFT Nifty rebounds keep struggling . Size your position so a stop-out at ₹306 would not hurt your sleep. Revisit the chart after a few sessions to see who wins. Treat ₹306 as your line in the sand. This is general information, not personal investment advice.
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