CUMMINSIND - Technical Analysis

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

Technical Rating: 4.2

Let’s break down the short-term technical structure of Cummins India Ltd. using trend indicators, price zones, and momentum signals

📉 Trend Overview

Current Price: ₹3,535

Strong price action above 50 DMA (₹3,367) and 200 DMA (₹3,196) → confirms ongoing uptrend

Close to 52-week high of ₹3,929, suggesting a potential run toward retesting those levels.

Trend Status: Trending upward with bullish momentum intact.

📊 Momentum Indicators

RSI: 57.5 – Bullish but not overbought → room for upside extension

MACD: 63.5 – Positive divergence with rising histogram → momentum building up

Volume: 5.72L vs avg 4.84L – Volume spike supports conviction in recent price move

📈 Moving Averages

Indicator Level (₹) Signal

50 DMA 3,367 Price above → near-term bullish

200 DMA 3,196 Strong support base

Both MAs reflect trend strength with a cushion for dips near ₹3,350–₹3,400.

📎 Bollinger Bands

Implied position near upper band due to price and MACD rise

Indicates short-term strength, but a small consolidation or pause could occur near resistance zones

📍 Price Action Zones

Type Price Range (₹) Commentary

Entry Zone 3,450–3,500 Favorable for momentum buyers

Resistance 3,900–3,930 Previous high zone

Target Zone 3,950–4,050 Breakout trajectory if volume holds

Support Zone 3,300–3,350 Good base for re-entry on dips

Trailing stop-loss can be placed below ₹3,300.

🧠 Additional Signals

FII Holdings ↑ 0.29% – Marginal increase in foreign interest

DII Holdings ↓ 0.31% – Possibly profit-booking at upper levels

EPS: ₹72.2 and strong ROE/ROCE → continues to support valuation strength

Debt-Free balance sheet allows financial flexibility

🧭 Conclusion

Cummins India is showing strong technical momentum with solid volume, supportive moving averages, and bullish MACD/RSI configuration. While a near-term pause near ₹3,900 is possible, the setup favors accumulation on dips and breakout trades above resistance.

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