Cummins India Limited (CUMMINSIND) Stock - Complete Technical Analysis - Oct 07, 2024

Cummins India Technical Analysis: Will the Stock Bounce Back ðŸˆ

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 today's analysis of Cummins India Limited, we see the stock currently trading at 3,591, showing notable volatility with a recent trading pattern marked by a Spinning Top candle and a Doji formation, indicating market indecision. The stock is down 13.92% from its 52-week high of 4,171.9 and has surged 116.45% from its 52-week low of 1,659.05, suggesting a strong recovery trend since the previous low.

Looking at technical indicators, the Relative Strength Index (RSI) is currently around 39, indicating that the stock is nearing oversold territory. The MACD line is negative, suggesting bearish momentum, while the Average Directional Index (ADX) is relatively low at 15.11, signaling a weak trend.

Support levels appear to be around 3,535, confirmed by the Classic Pivot S1, while resistance is seen at 3,781 based on the Classic Pivot point. Given the stock's recent highs and lows, we should be cautious of sudden price drops, particularly if it breaks below the 3,526 support level. Conversely, a rise above 3,656 could signal a potential reversal and a test of higher resistance.

The Average True Range (ATR) indicates considerable volatility, and the recent price action highlights a range between 3,526 and 3,707 over the past few days. Traders should watch for any breakouts beyond these levels as potential entry or exit points. Overall, this analysis suggests cautious trading, focusing on established support and resistance levels while being aware of market sentiment.