TIMKEN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.8

📈 Technical Analysis

• Chart Patterns: TIMKEN is trading near mid-range of its 52-week high/low, showing sideways movement with mild weakness.
• Moving Averages: Current price (3,037 ₹) is slightly below both 50 DMA (3,064 ₹) and 200 DMA (3,072 ₹), indicating mild bearish bias.
• RSI: At 42.4, RSI suggests neutral to weak momentum, not oversold but lacking strength.
• MACD: Negative at -4.63, signaling short-term bearish pressure.
• Bollinger Bands: Price near mid-band, suggesting consolidation phase.
• Volume Trends: Current volume (23,983) is lower than average weekly volume (30,083), showing reduced participation.

🎯 Momentum & Trade Zones

• Support Levels: 3,000 ₹ psychological support, 2,900 ₹ strong support, and long-term support at 2,750 ₹.
• Resistance Levels: 3,064–3,072 ₹ (DMA zone) and 3,150–3,200 ₹.
• Entry Zone: Accumulate near 2,950–3,000 ₹ if consolidation holds.
• Exit Zone: Short-term exit near 3,150–3,200 ₹.
• Trend: Stock is currently consolidating with mild bearish undertone.

✅ Positive

• Strong ROCE (20.9%) and ROE (17.0%).
• EPS at 60.5 ₹ reflects solid earnings base.
• Low debt-to-equity ratio (0.01), ensuring financial stability.
• DII holding increased by 2.04%, showing domestic institutional support.

⚠️ Limitation

• Stock trading below both 50 & 200 DMA, confirming weak momentum.
• High P/E ratio (50.3) compared to industry average (49.9), suggesting premium valuation.
• PEG ratio at 4.62 indicates expensive valuation relative to growth.
• Volume lower than average, showing reduced investor interest.

📉 Company Negative News

• Quarterly PAT declined from 104 Cr. to 89.5 Cr.
• FII holding reduced by -2.05%, showing weaker foreign investor confidence.

📊 Company Positive News

• DII holding increased by 2.04%, reflecting strong domestic support.
• Stable EPS and strong return ratios despite short-term profit decline.
• Debt-free balance sheet ensures resilience.

🏭 Industry

• Industry P/E at 49.9, close to TIMKEN’s 50.3, suggesting fair valuation relative to peers.
• Engineering and industrial sector outlook remains steady with demand recovery, though margins are under pressure.

📝 Conclusion

• TIMKEN is in a consolidation phase with mild bearish signals.
• Short-term momentum is weak, but strong fundamentals provide support.
• Best strategy: accumulate near 2,950–3,000 ₹ and book profits near 3,150–3,200 ₹.
• Medium-term outlook cautiously positive; breakout above 3,200 ₹ needed for further upside.