Cummins India forms Bullish Engulfing pattern

The stock Cummins India Limited formed an outside bar resembling a Bullish Engulfing pattern on the weekly time frame, which indicates bulls were in a dominant position. The stock has also given a breakout of downward sloping trendline formed by connecting swing highs from early May 2018. The breakout was supported by justifiable volumes.

Among momentum oscillators, the 14-period daily RSI is on a rising trajectory and trading in the bullish zone. Daily MACD stays bullish as it trades above its signal line. The stock is trading above its crucial short-term moving average, i.e. 21-day exponential moving average and it is in rising mode, which is a positive for the stock.

For any immediate decline Rs. 805-Rs. 800 is likely to act as short-term support as it is the confluence of 21-day simple moving average. While on the upside, the stock is likely to face resistance at Rs. 930, followed by Rs. 980.

On Friday, Cummins India was quoting Rs. 857.95 per share, up by Rs. 27.85 or 3.36 per cent on BSE, when the benchmark index BSE Sensex was at 36,076.72, up by 269.44 points or 0.75 per cent.