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We recommend a sell in Cummins India from a short-term trading perspective. It is clearly evident from the charts of Cummins India that after a medium-term uptrend from Rs 225, the stock encountered significant resistance at around Rs 330 in early September and began to decline. Since September, the stock has been on a medium-term downtrend, shaping low high and lower troughs. Experiencing selling pressure, the stock lost the entire gains made in July and August.

The stock is hovering around Rs 225, well below the 21 and 50-day moving averages. The daily and weekly relative strength indices are featuring in the bearish zone. The daily moving average convergence and divergence is steadily declining in line with the stock price, in the negative territory.

Our short-term forecast for the stock is bearish. We anticipate the stock’s downtrend to prolong further until it hits our price target of Rs 204 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 239.

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