{"id":280664,"date":"2013-01-23T10:26:13","date_gmt":"2013-01-23T04:56:13","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=280664"},"modified":"2013-01-23T10:30:15","modified_gmt":"2013-01-23T05:00:15","slug":"analysis-cumminsind","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/01\/23\/analysis-cumminsind\/","title":{"rendered":"Analysis: CUMMINSIND"},"content":{"rendered":"

Today\u2019s pick is CUMMINSIND [stockquote]CUMMINSIND[\/stockquote]. The stock started the year with a very quick up-move which experienced resistance around Rs. 500 levels. After many trials to break free, the stock traced down 20% to find the trend-line for support in June. Since then, the stock has been on an up-move and has seen a constant support from the trend-line. It saw its 52 weeks high of Rs. 542 in end December. In the last three months, the stock has moved -5%<\/strong><\/b> vs. +6% of the Nifty\u2019s. <\/p>\n

\"CUMMINSIND<\/a> <\/p>\n

Oscillators RSI<\/a> and CMO<\/a> are nearing the over-sold territory and are suggesting a short-term bullish<\/b> price action. The stock is close to the lower Bollinger band<\/a>, which is suggesting a bullish<\/b> move for the stock as well. <\/p>\n

The MACD<\/a> line and signal line are moving very close to each other unable to suggest any short-term direction, although the stagnating histograms level are suggesting a trend reversal<\/b>. Long-term and short-term GMMA<\/a> lines are very close to each other and are not able to point at the direction of stock movement. <\/p>\n

\"CUMMINSIND<\/a> <\/p>\n

CUMMINSIND\u2019s average correlation<\/a> with the Nifty<\/a> is 0.49 is positive<\/strong>. The scrip will be replicating the movement of Nifty. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

\"CUMMINSIND<\/a> <\/p>\n

CUMMINSIND has a historical volatility<\/a> in the range of 0.4 to 1.0. The scrip\u2019s volatility however is currently in the lower end of the range. <\/p>\n

Given these technicals, we suggest a short-term Buy. <\/b>A longer term watch is suggested, a call could be taken on the basis of spreading out of GMMA lines. To manage your risks we suggest having trailing stop-losses<\/a> in case trend-reversal were to take place. <\/p>\n

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