CUMMINSIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.4
| Stock Code | CUMMINSIND | Market Cap | 1,66,863 Cr. | Current Price | 6,023 ₹ | High / Low | 6,099 ₹ |
| Stock P/E | 73.7 | Book Value | 265 ₹ | Dividend Yield | 0.85 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,118 ₹ | DMA 200 | 4,470 ₹ |
| Chg in FII Hold | 1.35 % | Chg in DII Hold | -1.17 % | PAT Qtr | 548 Cr. | PAT Prev Qtr | 638 Cr. |
| RSI | 77.5 | MACD | 141 | Volume | 18,48,619 | Avg Vol 1Wk | 6,11,540 |
| Low price | 2,959 ₹ | High price | 6,099 ₹ | PEG Ratio | 2.09 | Debt to equity | 0.00 |
| 52w Index | 97.6 % | Qtr Profit Var | 6.71 % | EPS | 79.4 ₹ | Industry PE | 38.8 |
📈 Chart & Trend Analysis: CUMMINSIND is trading at ₹6,023, well above its 50 DMA (₹5,118) and 200 DMA (₹4,470), confirming strong bullish momentum. RSI at 77.5 indicates overbought conditions, suggesting caution. MACD at 141 remains positive, supporting upward momentum. Bollinger Bands show price near the upper band, signaling potential volatility and profit-taking risk.
🔎 Momentum Signals: Current volume (18.48L) is significantly higher than the 1-week average (6.11L), showing strong participation. Short-term momentum favors upside, but resistance near ₹6,050–₹6,100 may cap gains.
🎯 Entry Zone: ₹5,900–₹5,950 (support near breakout levels)
🚪 Exit Zone: ₹6,050–₹6,100 (resistance zone)
🛑 Stop-Loss: ₹5,750 (below 50 DMA)
📊 Trend Status: Strongly trending upward; possible consolidation if RSI remains elevated and profit-taking emerges.
Positive
- Trading well above both 50 DMA and 200 DMA confirms bullish trend.
- Strong ROE (28.8%) and ROCE (37.6%) highlight operational efficiency.
- Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability.
- EPS at ₹79.4 supports long-term earnings visibility.
- FII holdings increased (+1.35%), reflecting foreign investor confidence.
Limitation
- High P/E ratio (73.7) compared to industry PE (38.8) signals overvaluation risk.
- RSI at 77.5 indicates overbought conditions, raising caution for new entries.
- Quarterly PAT decline (₹638 Cr. to ₹548 Cr.) shows earnings pressure.
- PEG ratio at 2.09 suggests growth is already priced in.
Company Negative News
- Decline in DII holdings (-1.17%) shows reduced domestic institutional support.
- Quarterly profit decline raises near-term concerns.
Company Positive News
- Strong FII inflows (+1.35%) reflect foreign investor confidence.
- Debt-free balance sheet and strong efficiency ratios support fundamentals.
Industry
- Industry PE at 38.8 is much lower than CUMMINSIND’s 73.7, highlighting valuation premium.
- Capital goods sector benefits from infrastructure growth and industrial demand.
Conclusion
⚡ CUMMINSIND is in a strong uptrend with robust technical momentum and solid fundamentals. Entry near ₹5,900–₹5,950 offers cautious accumulation, with profit exits around ₹6,050–₹6,100. Elevated RSI and high valuations warrant disciplined risk management, but long-term prospects remain strong given efficiency and debt-free status.
Would you like me to expand this into a capital goods sector overlay comparing peers like ABB and Siemens, or keep it focused as a single CUMMINSIND swing trade report?