CUMMINSIND trade ideas
Cummins - Bullish tradeStock is in uptrend, i.e. making higher highs and higher lows.
Made rounding bottom patterns, gave a breakout from symmetrical triangle pattern and finally cracked 2018 highs.
Stock did a retracement with market correction, took support from first support level and looks like a good buy at CMP. Add more units when price breaks 1045 on higher side, Stock has potential to touch 1200 and make new highs in next 6 months timeframe.
Cant see any near by stop loss, I don't think stock will go below 850-900 levels in normal market conditions.
Cummins India Ltd.*Cummins India Ltd.*
Cup & Handle Pattern: Weekly/Monthly Basis
Rectangular Consolidation BreakOut
Price BreakOut/Volume Consolidation & Now Built-Up
*With Increase in Price, Trail Stop Loss*
*Book Profit as per Your Risk Appetite*
*Fundamentally Strong Company*
Co. is part of Cummins Inc. Group USA. Designs, manufactures, distributes and services diesel and alternative fuel engines.
Demand outlook is improving across end markets. Pent-up demand
expected to play out for a few months.
Started building prototypes for hydrogen application and is participating in Govt. tenders.
Improving Qtrly Sales/ Yrly Sales improving on TTM Basis.
Stable/Improving Profitability.
Low Equity. Strong TNW. Negligible Debt. High C&CE.
Strong Ops. Cash Flows. Stable WC Cycle. Double Digits RoA/RoE/ROCE
FII stake increasing since Sep'20.
Dividend Paying Co.
*Concern:*
High PE. DII Stake reduced.
Supply chain constraint related to semi-conductors is still impacting revenues
*Do Your Own Research as Well. This is Just an Opinion.*
Your Opinion may Differ and is Respected.
Happy Investing :)