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We recommend a buy in the stock of Timken India from a short-term perspective. It is seen from the charts of the stock that ever since bottoming out at around Rs 50 in early 2009, it has been on a long-term uptrend, forming higher peaks and troughs. In early June, the stock found support at Rs 185 and continued its upward journey. The stock has been in a short-term uptrend since then.
On July 5, the stock jumped three per cent breaching its 50- and 200-day moving averages conclusively and is trading well above them. Further, reinforcing the uptrend, the stock jumped four per cent breaking through its immediate resistance at Rs 224 on Monday. We notice that there is in increase in volumes over the past two trading sessions. The daily relative strength index is hovering in the bullish zone and weekly RSI is moving higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator is moving higher in line with the stock and is featuring in the positive territory.
We are bullish on the stock from a short-term perspective. We anticipate the stock's rally to prolong and reach our price target of Rs 236 or Rs 243 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 222.
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