Buy Cummins India; target of Rs 700: IIFL

IIFL is bullish on Cummins India and has recommended buy rating on the stock with a target of Rs 700 in its July 11, 2011 research report.
“Cummins India has signaled breakout from descending trend line above Rs 676 on Friday’s trading session after retracing almost 38.2% of previous up move. A stock is likely to exhibit strength in case if it fails to retrace beyond 38.2%. Adding to it, an inverted head and shoulder can also be visible in the daily RSI along with positive crossover. The amplitude of breakout indicate immediate target of Rs 740 in the near term. We advise buying stock in the range of Rs 676-678 with stop loss of Rs 667 for target of Rs 700 (Duration 5 days),” says IIFL research report.