Bajaj Broking has issued a bullish note on Eternal, the parent company of Zomato and Blinkit, projecting a target price of ₹290 within six months. The brokerage’s outlook relies on technical chart patterns and momentum indicators. Investors should consider that technical targets are based on market trends and do not guarantee future performance.
What Happened
Bajaj Broking has initiated a bullish stance on Eternal, the parent company operating the food delivery business Zomato and the quick-commerce service Blinkit. In a recent technical research note, the brokerage set a six-month price target of ₹290 for the stock. This outlook is based entirely on technical analysis and chart patterns, rather than a fundamental review of the company's quarterly earnings or long-term growth strategy.
Technical Factors Behind The View
The brokerage cites several technical signals to justify its positive view. According to the note, Eternal has shown a breakout above a significant falling trend line. This trend line was formed by connecting the stock's highs from October 2025 (₹368) and February 2026 (₹308). When a stock consistently trades above such a breakout point, it is often interpreted by analysts as a sign that a corrective phase may be ending.
Additionally, Bajaj Broking highlighted a "bullish crossover" in the stock's exponential moving averages (EMAs). In simple terms, this happens when the 20-day average moves above the 50-day average, which technical analysts often view as a sign of building price momentum. The brokerage also noted that the MACD (Moving Average Convergence-Divergence) indicator, a tool used to track trend direction, has issued a buy signal.
Understanding The Price Target
The proposed target of ₹290 is based on the range in which the stock has been moving recently. For the last nine weeks, Eternal has been consolidating, or moving sideways, between ₹235 and ₹265. The brokerage believes this consolidation period is coming to an end, creating conditions for the stock to resume an upward trend. The target was derived using the 50 percent retracement level—a technical method that measures how much a stock recovers after a decline.
Risks And Market Context
While technical indicators can provide insights into momentum, they do not predict the future with certainty. Investors should be aware that technical analysis is often subjective and can fail if broader market conditions change or if unexpected company-specific news impacts the stock. Market volatility and the overall trend of the broader indices can frequently override technical breakouts.
Furthermore, the stock's performance depends heavily on the underlying business fundamentals of its core platforms, Zomato and Blinkit. Technical analysis does not account for changes in consumer demand, competition in the quick-commerce space, or operating costs. Reliance on technical signals alone may overlook potential risks related to the company's financial health or sector-specific challenges.
What Investors Should Track
For those observing the stock, the brokerage has identified a key support zone between ₹235 and ₹240. This range represents the stock's lows from the past two months. Investors may track whether the stock can maintain its position above this support level. Sustaining the breakout and holding these levels will be the primary monitorable for those following the brokerage's technical thesis.