Here's why Mehul Kothari is bullish on Cummins India, Delta Corp

According to the technical analyst from Anand Rathi, Cummins India has confirmed a multiyear breakout above the Rs 1,050-level.

BUY CUMMINSIND

TARGET: Rs 1,180

STOP LOSS: Rs 980

In recent sessions, Cummins India confirmed a multiyear breakout above the Rs 1,050-mark and closed above the same. If we go through the monthly line chart then it can be seen that the stock is about to confirm a major breakout if it closes the month above 1,000 mark.

The current price action indicates strong possibility of stock closing the month above Rs 1,000 mark. In that scenario; the doors will be open for an upside towards Rs 1,300 – Rs 1,400 in the coming months. Thus; short term traders are advised to buy the stock in the range of Rs 1,050 – Rs 1,030 with a stop loss of Rs 980 on a closing basis for an upside potential target of Rs 1,180 in coming 1 to 2 months.

BUY DELTACORP

TARGET: Rs 340 - 370

STOP LOSS: Rs 270

Since Oct 2021; Delta Corp has been consolidating in a broad range of Rs 310 - Rs 240. In recent sessions, the stock confirmed a breakout from that range and that too with humongous volumes. In the process, the stock managed to clear many other resistances along with breakout in RSI indicator. Even for a short term; the theoretical target comes around Rs 340 mark and for medium term; the stock is poised to move towards Rs 400 mark due to the bullish flag breakout on the monthly chart.

Thus traders holding the stock should continue to hold the same for mentioned targets. For fresh entry; one can accumulate the stock on dips between Rs 310 – Rs 300 with a stop loss of Rs 270 for an upside target of Rs 340 – Rs 370 in the coming 2 – 3 months.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal.)