Ever since the stock of Timken India witnessed a huge fall in March, it has been on an uptrend, continuously making higher peaks and higher troughs – a bullish indication. But the scrip started to move along a horizontal pathway since early July, largely oscillating between ₹930 and ₹1,060. After staying in the sideways trend for nearly two weeks, the price broke out of the upper boundary of the range last week, opening the door for further strengthening.

Yesterday, the stock saw higher volatility and interestingly it registered a fresh lifetime high of ₹1,194. Corroborating the positive view, the daily relative strength indicator is positive despite a small blip yesterday; the moving average convergence divergence indicator in the daily chart, which was mostly flat since the beginning of August, has now started to take an upward trajectory. Moreover, the stock has a substantial support at ₹1,060 and the outlook will remain positive until the stock trades above it. Considering these factors, traders can go long in the stock with stop-loss at ₹1,060 with potential target of ₹1,195.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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