CUMMINSIND - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.4

📊 Analysis Summary

Cummins India (CUMMINSIND) is in a strong technical uptrend with solid fundamentals and excellent capital efficiency. Despite a slight dip in quarterly profit, the stock shows bullish momentum and institutional interest. It’s a high-quality candidate for swing trading, especially on minor pullbacks.

🔍 Technical Indicators

RSI (57.5): Bullish — momentum is healthy, not overbought.

MACD (+63.5): Strongly positive — confirms upward trend.

Price vs DMA

Current Price (₹3,535) is above 50 DMA (₹3,367) and 200 DMA (₹3,196) — bullish setup.

Volume: Above average — confirms buying interest.

📈 Fundamental Snapshot

P/E (49.1) vs Industry PE (41.8): Slightly overvalued — growth priced in.

PEG Ratio (1.41): Reasonable — valuation aligns with growth.

ROE (28.2%) & ROCE (36.3%): Excellent — strong profitability.

EPS (₹72.2) vs Price (₹3,535): Fair valuation.

Qtr Profit Decline (-1.74%): Minor — not a major concern.

FII Holding ↑ (+0.29%): Mild foreign interest.

DII Holding ↓ (-0.31%): Slight domestic trimming.

Debt to Equity (0.00): Debt-free — strong financial health.

Dividend Yield (1.46%): Decent — adds downside cushion.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹3,470–₹3,500 range, on minor pullbacks.

Confirm entry with RSI holding above 55 and MACD continuation.

Watch for volume strength and price stability above 50 DMA.

🚪 Exit Strategy (If Already Holding)

Exit near ₹3,850–₹3,900, close to recent high and resistance zone.

If price drops below ₹3,450, consider stop-loss at ₹3,400 to protect gains.

⚖️ Final Verdict

CUMMINSIND is a technically strong, fundamentally sound stock with excellent capital efficiency and momentum. It offers a high-probability swing trade setup with clear upside potential and low financial risk. Ideal for traders seeking quality with momentum.

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