TIMKEN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.1

📈 TIMKEN is currently in a trending phase with strong short-term momentum and bullish indicators. Entry zone: ₹3,080–₹3,138; exit zone: ₹3,250–₹3,310. Watch for breakout continuation above ₹3,310.

📊 Technical Overview

• Price Action: Trading at ₹3,138, above both 50-DMA (₹3,018) and 200-DMA (₹3,068), indicating bullish trend continuation.
• RSI (67.3): Near overbought zone, signaling strong momentum but caution for short-term pullback.
• MACD (15.5): Bullish crossover with rising histogram, confirming upward momentum.
• Bollinger Bands: Price approaching upper band, suggesting strength but possible resistance.
• Volume: Well above 1-week average, indicating strong buying interest and breakout conviction.
• Support Zones: ₹3,080 (S1), ₹3,018 (S2)
• Resistance Zones: ₹3,250 (R1), ₹3,310 (R2)

✅ Positive

• Low debt-to-equity ratio (0.01) ensures financial stability.
• Strong ROCE (20.9%) and ROE (17.0%) reflect efficient capital utilization.
• EPS of ₹60.5 supports valuation and earnings visibility.
• 52-week performance up 68.2%, indicating strong investor confidence.

⚠️ Limitation

• Stock P/E (51.8) slightly above industry average (50.5), suggesting premium valuation.
• PEG ratio of 4.77 indicates high valuation relative to growth.
• Quarterly PAT declined from ₹187 Cr. to ₹104 Cr., signaling earnings volatility.
• RSI nearing overbought zone, caution for short-term traders.

📉 Company Negative News

• Decline in FII holdings (-2.05%) reflects reduced foreign investor confidence.
• Quarterly profit contraction may impact near-term sentiment.

📈 Company Positive News

• Increase in DII holdings (+2.04%) shows strong domestic institutional support.
• Strong demand in automotive and industrial segments driving long-term growth.

🏢 Industry

• Bearings and mechanical components sector benefits from manufacturing and infrastructure expansion.
• Industry P/E of 50.5 reflects high growth expectations across peers.

🧭 Conclusion

• TIMKEN is trending upward with strong technical momentum and bullish indicators.
• Entry zone: ₹3,080–₹3,138; exit zone: ₹3,250–₹3,310 for short-term swing trades.
• Long-term investors may accumulate on dips, supported by strong fundamentals and sector tailwinds.