PL Technical Research: Buy CUMMINS - Medium Term Tech Pick

PL Technical Research: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt.

BUY CUMMINS CMP: 1775 TRGT: 1970 SL: 1700 - MEDIUM TERM TECH PICK - The stock has witnessed a decent steep correction from 1980 zone and has shown signs of bottoming out near 1720 zone with indication of improvement in the bias. The stock has almost reached the long term trendline support zone and is well placed with favourable risk reward ratio. The RSI after the steep fall has attained the highly oversold zone and with a reversal indication has signaled a buy with much upside potential visible. With the chart looking attractive, we suggest to buy and accumulate the stock for an upside target of 1970 keeping the stop loss at 1700.