Cummins India’s stock surpassed the key-level of ₹2,000 in early January. Post this move, it has been steadily appreciating. But over the past few sessions, the stock was facing a hurdle at ₹2,300. But Cummins broke out of this on Monday. The trend, already being bullish, is helped further by the fresh breakout.
While there is a chance for the stock to see a corrective decline to ₹2,300, it is expected to regain traction soon and rally to ₹2,450 in the near-term. Therefore, traders can go long on Cummins India at the current level of ₹2,350 and add more shares to your holdings if the price dips to ₹2,300. Place stop-loss at ₹2,270. Shift the stop-loss to ₹2,350 when the stock moves above ₹2,400. Exit at ₹2,450.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)