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TIMKEN - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 02 Feb 26, 10:12 am

Technical Rating: 3.4

Stock Code TIMKEN Market Cap 22,814 Cr. Current Price 3,030 ₹ High / Low 3,576 ₹
Stock P/E 50.2 Book Value 368 ₹ Dividend Yield 1.19 % ROCE 20.9 %
ROE 17.0 % Face Value 10.0 ₹ DMA 50 3,026 ₹ DMA 200 3,057 ₹
Chg in FII Hold -0.45 % Chg in DII Hold 0.43 % PAT Qtr 89.5 Cr. PAT Prev Qtr 104 Cr.
RSI 52.1 MACD -14.6 Volume 65,983 Avg Vol 1Wk 49,330
Low price 2,200 ₹ High price 3,576 ₹ PEG Ratio 4.61 Debt to equity 0.01
52w Index 60.4 % Qtr Profit Var -0.53 % EPS 60.5 ₹ Industry PE 47.4

📊 Chart Patterns: TIMKEN is trading at 3,030 ₹, slightly above its 50 DMA (3,026 ₹) but below the 200 DMA (3,057 ₹). The price is consolidating near key moving averages, suggesting indecision in trend direction after a pullback from its 52-week high (3,576 ₹).

📈 Moving Averages: Current price is hovering around both 50 DMA and 200 DMA, indicating consolidation. A breakout above 3,060 ₹ could confirm bullish continuation, while a breakdown below 3,000 ₹ may trigger weakness.

📉 RSI: At 52.1, RSI is neutral, suggesting balanced momentum without strong overbought or oversold signals.

📉 MACD: Negative at -14.6, showing mild bearish divergence and lack of strong buying signals.

📊 Bollinger Bands: Price is near the mid-band, reflecting consolidation. No clear breakout or breakdown signals yet.

📊 Volume Trends: Current volume (65k) is slightly higher than average weekly volume (49k), suggesting moderate participation but not strong conviction.

📌 Momentum Signals: Short-term momentum is neutral-to-weak. Support lies around 2,950–3,000 ₹, while resistance is near 3,060–3,100 ₹.

🎯 Entry Zone: 2,950–3,000 ₹ (near support, only for short-term traders with strict stop-loss).

🎯 Exit Zone: 3,060–3,100 ₹ (near resistance and 200 DMA).

🔎 Trend Status: The stock is consolidating near key averages, awaiting breakout direction.


Positive

  • EPS of 60.5 ₹ indicates strong profitability.
  • ROCE (20.9%) and ROE (17.0%) reflect efficient capital usage.
  • Low debt-to-equity ratio (0.01) ensures financial stability.
  • Dividend yield of 1.19% adds investor appeal.

Limitation

  • High P/E ratio (50.2) compared to industry PE (47.4) suggests overvaluation risk.
  • MACD remains negative, showing weak momentum.
  • PEG ratio of 4.61 signals expensive valuation relative to growth.
  • Quarterly PAT declined slightly from 104 Cr. to 89.5 Cr.

Company Negative News

  • FII holdings decreased by -0.45%, showing reduced foreign investor confidence.
  • Quarterly profit variation at -0.53% reflects stagnation.

Company Positive News

  • DII holdings increased by 0.43%, reflecting domestic institutional support.
  • Strong fundamentals with consistent profitability and dividend payouts.

Industry

  • Industry PE at 47.4 suggests moderate valuations compared to TIMKEN’s higher P/E.
  • Bearings and engineering sector remains stable with long-term demand outlook.

Conclusion

⚖️ TIMKEN is consolidating near its moving averages, showing indecision in momentum. Short-term traders may consider entry near 2,950–3,000 ₹ with strict stop-loss, targeting 3,060–3,100 ₹ resistance. Long-term investors should wait for a breakout above 3,100 ₹ with sustained volume before fresh positions.

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