Positional traders are advised to buy into this counter for a target of Rs 747 with a stop loss below Rs 670 on a closing basis, says Mazhar Mohammad of Chartviewindia.in.
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Mazhar Mohammad
After a prolonged downtrend from the highs of Rs 1247 registered in the year 2015, Cummins India appears to have taken support around the demand line of the 3-year old descending channel.
Moreover, after retracing 50 percent of its last leg of the rally from the lows of Rs 642-717 this counter registered a piercing formation in the last session which is a reversal sign suggesting the end of correction.
Hence, sustaining above Rs 674 levels this counter can initially test its 200-day moving average. Positional traders are advised to buy into this counter for a target of Rs 747 with a stop loss below Rs 670 on a closing basis.
Disclaimer: The author is Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in. The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.First Published on Oct 22, 2018 11:09 am
