Analysis of the Cummins India Ltd. (CUMMINS)
Analysis of the Cummins India Ltd. (CUMMINS) Chart:
Key Observations:
Resistance and Breakout Zone:
The chart highlights a significant resistance level at ₹3,600–₹3,620, which the stock is currently testing.
A downtrend line (dotted) also converges near this zone, making it a critical level to watch. A breakout above this trendline would confirm a bullish move.
Support Level:
The ₹3,262 level acts as a strong horizontal support zone. The stock has tested this level multiple times, indicating solid buying interest at this level.
Targets Identified:
Target 1: ₹3,883.75 — This is the next key resistance zone if the stock breaks out above ₹3,620.
Target 2: ₹4,106.45 — This level represents the next significant hurdle based on prior highs.
Consolidation Phase:
The stock has been consolidating in a range between ₹3,262 and ₹3,620 for the past few months, creating a base for a potential breakout.
Targets:
Short-term:
A breakout above ₹3,620 can lead to a move toward ₹3,883 (Target 1).
Sustained momentum beyond ₹3,883 can aim for ₹4,106 (Target 2).
Medium-term:
If ₹4,106 is breached, the stock could head toward ₹4,200–₹4,300 in a strong bullish scenario.
Trading Plan:
Entry:
Enter on a breakout and sustained close above ₹3,620 with volume confirmation.
Stop Loss:
Place a stop loss at ₹3,500 (below the breakout zone) to manage risk.
Target Levels:
Short-term target: ₹3,883.
Medium-term target: ₹4,106.
Pullback Opportunity:
If the stock retraces to ₹3,500–₹3,550 and holds, it could provide a better risk-reward entry point.
Conclusion:
Cummins India Ltd. is at a critical resistance zone. A confirmed breakout above ₹3,620 can signal the start of a bullish move, with immediate targets of ₹3,883 and ₹4,106. Monitor the price action and volume near the resistance for confirmation.
Key Observations:
Resistance and Breakout Zone:
The chart highlights a significant resistance level at ₹3,600–₹3,620, which the stock is currently testing.
A downtrend line (dotted) also converges near this zone, making it a critical level to watch. A breakout above this trendline would confirm a bullish move.
Support Level:
The ₹3,262 level acts as a strong horizontal support zone. The stock has tested this level multiple times, indicating solid buying interest at this level.
Targets Identified:
Target 1: ₹3,883.75 — This is the next key resistance zone if the stock breaks out above ₹3,620.
Target 2: ₹4,106.45 — This level represents the next significant hurdle based on prior highs.
Consolidation Phase:
The stock has been consolidating in a range between ₹3,262 and ₹3,620 for the past few months, creating a base for a potential breakout.
Targets:
Short-term:
A breakout above ₹3,620 can lead to a move toward ₹3,883 (Target 1).
Sustained momentum beyond ₹3,883 can aim for ₹4,106 (Target 2).
Medium-term:
If ₹4,106 is breached, the stock could head toward ₹4,200–₹4,300 in a strong bullish scenario.
Trading Plan:
Entry:
Enter on a breakout and sustained close above ₹3,620 with volume confirmation.
Stop Loss:
Place a stop loss at ₹3,500 (below the breakout zone) to manage risk.
Target Levels:
Short-term target: ₹3,883.
Medium-term target: ₹4,106.
Pullback Opportunity:
If the stock retraces to ₹3,500–₹3,550 and holds, it could provide a better risk-reward entry point.
Conclusion:
Cummins India Ltd. is at a critical resistance zone. A confirmed breakout above ₹3,620 can signal the start of a bullish move, with immediate targets of ₹3,883 and ₹4,106. Monitor the price action and volume near the resistance for confirmation.
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