CUMMINSIND - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.4

🚀 CUMMINSIND is currently in a strong uptrend, with bullish momentum indicators and price action at all-time highs.

📊 Technical Overview

• Trend Status: Trending upward — price has surged from ₹2,580 to ₹4,361, nearing its 52-week high of ₹4,401.
• Moving Averages: Price is well above both 50 DMA (₹3,982) and 200 DMA (₹3,558), confirming strong bullish momentum.
• RSI (72.5): In overbought territory, indicating strong momentum but also potential for short-term pullback.
• MACD (105): Strong positive crossover, reinforcing bullish sentiment.
• Bollinger Bands: Price hugging the upper band, suggesting strength but also overextension.
• Volume: Above average (6.88L vs 5.40L), showing strong buying interest and participation.

📌 Entry & Exit Zones

• Support Zone: ₹4,000–₹4,100 — potential entry zone on pullbacks.
• Resistance Zone: ₹4,400–₹4,450 — ideal for short-term profit booking.
• Breakout Level: ₹4,401 — a sustained move above this could lead to price discovery and new highs.

✅ Positive

• Exceptional ROCE (37.6%) and ROE (28.8%) reflect superior capital efficiency.
• Zero debt and consistent dividend yield (1.19%) enhance financial stability.
• Quarterly PAT growth from ₹521 Cr to ₹555 Cr and EPS of ₹74.9 indicate strong earnings momentum.
• FII holdings increased by 0.85%, signaling foreign investor confidence.

⚠️ Limitation

• RSI in overbought zone (72.5) suggests potential for short-term correction.
• High P/E (59.2) and PEG ratio (1.68) indicate premium valuation.
• Price is near 52-week high; risk of profit booking in near term.

📰 Company Negative News

• Marginal decline in DII holdings (-0.80%) may reflect cautious domestic sentiment.

🌟 Company Positive News

• Strong quarterly profit growth (32.3%) and consistent upward earnings trajectory.
• Stock has delivered stellar returns, with a 52-week index of 97.8%.

🏭 Industry

• Operates in capital goods and engineering, benefiting from infrastructure and industrial capex cycles.
• Industry P/E (40.8) is lower than the stock’s, suggesting valuation premium due to performance leadership.

🧾 Conclusion

• CUMMINSIND is technically strong with bullish indicators and robust fundamentals.
• Entry on dips near ₹4,000–₹4,100 is favorable; watch for breakout above ₹4,401 for further upside.
• Long-term investors may continue to hold; short-term traders should monitor RSI and resistance levels for signs of exhaustion.