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Investors with a short term perspective can buy the stock of Cummins India at current levels. The stock gained 5.5 per cent with above average volume on Wednesday, rebounding from the key support level of ₹550. This up-move has strengthened both the intermediate as well as short term uptrends. Since the stock took support at ₹281 which is the 52-week low recorded in early April this year, it has been on an intermediate-term uptrend.
Short-term trend is up since it took base from ₹440 in late October, backed with good volume. The stock trades well above the 50- and 200-day moving averages. The daily as well as the weekly relative strength indices are featuring in the bullish zone backing the uptrend. Besides, the daily and the weekly price rate of change indicators are hovering in the positive terrain implying buying interest. Though the stock faces a key resistance ahead at ₹600 but it has potential to surpass and reach the price targets of ₹615 and ₹626 in the coming trading sessions.
Traders with a short term view can buy the stock with a stop-loss at ₹575. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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