Gladiator Stocks - Cummins India - ICICI Securities

Strategy

Buy Cummins India in the range of Rs. 450.00-465.00 for target price of Rs. 540.00 with a stop loss of Rs. 410.00. Time Frame: Six months

Technical View

The capital goods space is witnessing fresh momentum after last three months base formation and is expected to witness catch up with the rest of the market.

The share price of Cummins India has generated a breakout above the last three months higher base formation (Rs. 311-439) and in the process has also closed above the falling supply line joining highs since May 2019 (Rs. 801) signalling a reversal of the corrective trend and resumption of fresh up move, thus offers fresh entry opportunity with a favourable risk reward set up.

Structurally, the stock in the last three months of base formation has constantly forming higher lows highlighting positive price structure. A trendline joining the lows since April 2020 (Rs. 280) is placed around Rs. 410-420 levels which is expected to act as major value area for the stock.

Based on the above technical observations we expect the stock to continue with its current momentum and head towards Rs. 540 levels as it is the confluence of the high of Mar 2020 and 50% retracement of the entire decline since May 2019 (Rs. 801-280) placed at Rs. 540 levels.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GladiatorStocks_CumminsInd_Aug20.pdf

Shares of CUMMINS INDIA LTD. was last trading in BSE at Rs.465.25 as compared to the previous close of Rs. 458.45. The total number of shares traded during the day was 70299 in over 2006 trades.

The stock hit an intraday high of Rs. 468.4 and intraday low of 458.45. The net turnover during the day was Rs. 32621708.

Source : Equity Bulls

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