Cummins Inc.

(New York Stock Exchange)
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Very Bullish +80

Rajesh Palviya of Axis Sec suggests Hindalco Industries, Cummins India, Adani Power shares to buy on April 10

AI-generated analysis

📈 Nifty 50 rose 0.72% to 23,944.95 and Sensex gained 0.70% to 77,189.05 as markets opened positively on April 10.

🏦 The financial sector climbed 1.6% today and 8.2% over the week after ending a six-week decline caused by foreign outflows.

💻 IT index dropped 1.5% led by TCS, which fell 2% despite posting a 9.7% revenue increase and 12.2% profit rise in March.

🌍 A temporary ceasefire agreement between the US and Iran provided some relief, though Middle East concerns limited further rally momentum.

📊 The market broke above a falling channel from late February but faces resistance near the 24,000 level marked by the 40-day EMA.

⚠️ If Nifty can decisively break above 24,000, potential targets include 24,415 and 24,800 before facing key support at 23,350 or 23,000.

💼 Rajesh Palviya of Axis Securities advises buying Hindalco Industries shares with an expected upside to ₹1,010-₹1,030.

📈 Hindalco broke above ₹976 resistance on a closing basis, triggering a buy signal as prior support now strengthens the uptrend.

⚙️ Cummins India shares are recommended for buying and holding after breaking above the upper Bollinger Band at ₹4,770.

📈 Cummins India is trading above all key moving averages with an upside target range of ₹5,000-₹5,350.

⚡ Adani Power continues forming higher highs and higher lows with a strong bullish bias supported by momentum indicators.

💰 Adani Power broke above the horizontal resistance at ₹172.5, suggesting continued growth with targets between ₹183-₹190.

🛑 Investors are advised to check support zones like ₹950-₹930 for Hindalco and ₹4,750-₹4,650 for Cummins before accumulating.

⚖️ All three recommended stocks show positive technical setups with momentum indicators in favorable territory across time frames.

📢 Analyst recommendations are provided for educational purposes and investors should consult certified experts before making decisions.

Bullish Signals
  • The stock market opened positively on April 10 with Nifty 50 rising 0.72% to 23,944.95 and Sensex gaining 0.70% to 77,189.05, driven by financial sector gains.
  • Hindalco Industries decisively broke above the 8-9 week horizontal resistance zone at 976 on a closing basis, signalling a strong continuation of the uptrend with an expected upside of ₹1,010-1,030.
  • Cummins India has broken above the upper band of the falling channel at ₹4,770 and is positioned above its 20, 50, 100, and 200-day SMAs with all key averages trending higher, indicating an expected upside of ₹5,000-5,350.
  • Adani Power continues to trend higher forming a series of higher highs and higher lows, firmly positioned above its 20, 50, 100, and 200-day SMAs after breaking above horizontal resistance at ₹172.5 with an expected upside of ₹183-190.
  • The Nifty 50 and Sensex have both climbed approximately 5.5% so far this week, positioning them to break a six-week streak of losses after a temporary two-week ceasefire was agreed upon by the United States and Iran.
  • Momentum indicators for Hindalco Industries, Cummins India, and Adani Power remain supportive with daily, weekly, and monthly RSI in favourable territory, reinforcing sustained strength across all time frames.
Risk Factors
  • Concerns regarding a delicate ceasefire in the Middle East limited further increases in the stock market.
  • The financial sector had experienced an unprecedented outflow of foreign funds in March prior to the rally on April 10.
  • TCS shares dropped by 2% following its quarterly results despite reporting a 9.7% revenue increase, indicating potential underlying quality concerns or one-off gains.
  • The Nifty 50 index is currently facing significant resistance near the 24,000 mark which coincides with the 40-day EMA, acting as a critical hurdle for further upside momentum.
  • TCS's decline of 1.5% in the IT index contributed to limiting broader market increases despite the financial sector gains.
  • The article focuses on bullish trends and buy recommendations without mentioning any fundamental risks or valuation concerns associated with the recommended stocks like Hindalco, Cummins India, or Adani Power.
Full Analysis
The stock market opened positively on April 10, with major benchmarks Nifty 50 and Sensex rising by 0.72% and 0.70% respectively to reach levels of 23,944.95 and 77,189.05 as of 9:21 IST. The rally was primarily driven by strong gains in the financial sector, which climbed 1.6% on the day and 8.2% over the week, marking a recovery from a six-week decline triggered by foreign outflows in March. Conversely, the IT sector faced headwinds, with the index dropping 1.5% led by TCS, which saw its shares fall 2% following quarterly results that showed a 9.7% revenue increase and a 12.2% rise in net profit for the March quarter. Broader indices like Nifty Small-cap and Nifty Mid-cap rose approximately 1% each, though market momentum faced potential resistance near 24,000. Rajesh Palviya, SVP of Technical and Derivatives Research at Axis Securities, provided analysis on specific stock picks for investors. He highlighted Hindalco Industries for its decisive break above the ₹976 resistance zone, noting that its price action aligns with positive momentum indicators like RSI. For Cummins India, Palviya pointed out a breakout above the upper band of a falling channel at ₹4,770, with the stock positioned above key moving averages and generating buy signals from technical metrics. Adani Power was also recommended, as it continues to trend higher with higher highs and higher lows on both daily and weekly charts, having broken above horizontal resistance at ₹172.5. According to Palviya's recommendations, investors should consider buying and holding these three stocks for potential gains. Hindalco Industries is expected to move up between ₹1,010-1,030 with support levels at ₹950-930. Cummins India is projected to see an upside of ₹5,000-5,350, supported by the range of ₹4,750-4,650. Adani Power carries an expected upside of ₹183-190 with downside support at ₹166-160. While Palviya suggests these stocks for accumulation, he also notes that the Nifty 50 index needs a decisive breakout above 24,000 to resume its uptrend toward higher targets like 24,415 and 24,800. This analysis reflects individual views from Axis Securities and is intended for educational purposes, with advice given to investors to consult certified experts before making decisions.