⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CUMMINSIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | CUMMINSIND | Market Cap | 1,13,516 Cr. | Current Price | 4,095 ₹ | High / Low | 4,615 ₹ |
| Stock P/E | 50.9 | Book Value | 265 ₹ | Dividend Yield | 1.26 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,192 ₹ | DMA 200 | 3,894 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -1.13 % | PAT Qtr | 638 Cr. | PAT Prev Qtr | 555 Cr. |
| RSI | 42.1 | MACD | -81.9 | Volume | 3,78,643 | Avg Vol 1Wk | 5,58,113 |
| Low price | 2,580 ₹ | High price | 4,615 ₹ | PEG Ratio | 1.44 | Debt to equity | 0.00 |
| 52w Index | 74.4 % | Qtr Profit Var | 41.5 % | EPS | 81.6 ₹ | Industry PE | 36.0 |
📊 Technical Analysis
- Chart Patterns: CUMMINSIND is trading at 4,095 ₹, below its recent high of 4,615 ₹, showing weakness after a strong rally. Price action suggests sideways consolidation with bearish undertones.
- Moving Averages: Current price is below 50 DMA (4,192 ₹) but above 200 DMA (3,894 ₹), indicating medium-term strength but short-term weakness.
- RSI: At 42.1, the stock is neutral, leaning toward oversold territory.
- MACD: Negative (-81.9), confirming bearish crossover and weak momentum.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions and potential mean reversion.
- Volume Trends: Current volume (3.78L) is lower than 1-week average (5.58L), showing reduced participation and lack of strong buying interest.
📈 Momentum & Signals
- Short-Term Momentum: Weak, with potential for relief rally if RSI-driven bounce occurs.
- Support Zones: 4,000 ₹ (near-term support), 3,900 ₹ (200 DMA support), 3,600 ₹ (strong support).
- Resistance Zones: 4,192 ₹ (50 DMA), 4,300–4,350 ₹ (intermediate resistance), 4,615 ₹ (recent high).
- Optimal Entry: Around 3,950–4,050 ₹ if support holds.
- Optimal Exit: 4,300–4,350 ₹ range, unless breakout above 4,615 ₹ confirms reversal.
- Trend Status: Currently consolidating with bearish bias; reversal possible only if price sustains above 4,192–4,300 ₹.
✅ Positive
- Strong ROCE (37.6%) and ROE (28.8%) indicate excellent capital efficiency.
- Debt-free balance sheet (Debt-to-equity 0.00) ensures financial resilience.
- EPS of 81.6 ₹ reflects strong earnings power.
- Quarterly PAT growth (638 Cr. vs 555 Cr.) shows operational strength.
- FII holdings increased (+1.07%), showing foreign investor confidence.
⚠️ Limitation
- High P/E (50.9) compared to industry PE (36.0), suggesting overvaluation.
- PEG ratio of 1.44 indicates growth is priced expensively.
- MACD negative and price below 50 DMA confirm short-term weakness.
- DII holdings decreased (-1.13%), showing reduced domestic support.
📉 Company Negative News
- DII holdings declined (-1.13%), reflecting cautious sentiment among domestic institutions.
- Stock has corrected from its peak of 4,615 ₹, showing resistance at higher levels.
📈 Company Positive News
- PAT improved significantly from 555 Cr. to 638 Cr. in recent quarter.
- FII holdings increased (+1.07%), showing foreign investor confidence.
- Strong ROCE and ROE highlight operational efficiency.
🏭 Industry
- Industry P/E is 36.0, lower than CUMMINSIND’s 50.9, suggesting relative overvaluation.
- Capital goods and engineering sector remains strong, supported by infrastructure growth and industrial demand.
📝 Conclusion
- CUMMINSIND is fundamentally strong but technically consolidating with bearish bias.
- Stock may see a relief rally if support near 4,000 ₹ holds and price sustains above 4,192–4,300 ₹.
- Best strategy: Accumulate cautiously near 3,950–4,050 ₹ with exit around 4,300–4,350 ₹ unless breakout above 4,615 ₹ confirms reversal.