Cummins India Limited (CUMMINSIND) Stock - Complete Technical Analysis - Sep 25, 2024

Cummins India Technical Analysis: Is a Rebound Possible

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

In todays analysis of Cummins India Limited, currently trading at 3764, we see a stock that is 9.78% below its 52-week high of 4171.9 reached in late June 2024, while impressively up 127.65% from its 52-week low of 1653.3. The stock is exhibiting a bearish sentiment as indicated by the formation of a bearish engulfing pattern, which could signal further downside pressure.

Examining key indicators, the MACD shows a positive divergence, suggesting potential upward momentum despite recent price action. The RSI, currently at 48.01, is in neutral territory, indicating a balance between buying and selling pressure. Meanwhile, the ADX is relatively low at 10.73, reflecting a weak trend, which may suggest consolidation or sideways movement in the near term.

Support levels appear to be robust, with the classic pivot point around 3677.58, indicating a potential bounce back area. The upper resistance is highlighted at the classic R1 level of 3996.12, which may act as a barrier for any bullish attempts.

Moving averages such as the EMA and SMA are closely positioned around 3800, providing further insight into short-term price action. With a strong ROCE of 35.2% and ROE of 28.1%, fundamentals remain solid, but traders should be cautious as the market navigates through this bearish pattern and varying momentum indicators. Traders should watch these critical levels and indicators closely to make informed decisions.