Cummins India is displaying a strong bullish technical structure on the daily timeframe and is currently trading around Rs 5,498. The stock continues to maintain a Higher High–Higher Low (HH-HL) formation, indicating sustained buying interest and a healthy continuation of the prevailing uptrend. The recent price action suggests that buyers continue to dominate despite intermittent profit booking.ET CONTRIBUTORSThe stock has recently found support near its 50-Day EMA and has seen a sharp rebound from that zone, highlighting strong demand at lower levels and reaffirming the importance of this moving average as a key dynamic support. It is also trading comfortably above all its 20, 50, 100, and 200-Day EMA levels, reflecting bullish alignment across short-, medium-, and long-term timeframes and reinforcing the positive technical outlook.Momentum indicators suggest that the broader trend remains constructive. Although the RSI has eased from higher levels, it continues to hold near the midpoint, indicating that the recent consolidation appears to be a healthy pause within the ongoing uptrend rather than a reversal.ET CONTRIBUTORSIn the near term, immediate support is placed around Rs 5,400, which is expected to act as a strong cushion during any short-term corrective move. As long as the stock sustains above this level, the overall technical bias remains positive.From the derivatives perspective, the Open Interest (OI) data indicates signs of short covering, with call writers reducing positions across several strikes while price has stabilized near support. This unwinding of bearish positions, along with relatively lighter call resistance at higher strikes, suggests improving market sentiment. Continued short covering may provide additional momentum and support a further recovery in the stock over the coming sessions.DERIVATIVE STRATEGY-CUMMINSIND Derivatives strategy (Call Ratio Spread)Buy CUMMINSIND 28th JULY 26, 5500 CE 1 lot @ 132.65Sell CUMMINSIND 28th JULY 26, 5600 CE 2 lots @ 91.35Buy CUMMINSIND 28th JULY 26, 5650 CE 1 lot @ 74.75Max Loss : 4940 below 5500(on expiry)Max Profit : 15060 at 5600 (on expiry)Max Profit : 5060 above 5650 (on expiry)Margin required: 77000 (Approximately)Breakeven: Above 5525(Duration: Till Expiry)(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)