Here’s why Mehul Kothari recommends buying Wipro, Cummins on dips

Cummins India

BUY

Buy Near Rs 1,200

Target: Rs 1,400

Stop Loss: Rs 1,100

The stock of Cummins India has been a strong performer and recently confirmed a breakout above Rs 1,150 mark and that too at all-time high. The price action is supported by rising volumes which indicates the breakout is genuine.

The theoretical price target for the range breakout seems to be around Rs 1,500. Thus, we advise traders to buy the stock on dips near Rs 1,200 for an upside target of Rs 1,400 in the coming sessions.

Wipro

BUY

Buy Near Rs 410

Target: Rs 450

Stop Loss: Rs 390

The stock Wipro has been one of the most beaten down counter from the IT space. Most of the IT stocks have started recovering and WIPRO too might follow that.

We are witnessing a positive divergence of RSI on daily as well as weekly scale and that indicates possibility of bounce. Thus, we advise traders to buy the stock on dips near Rs 410 for an upside target of Rs 450 in the coming weeks.

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

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