Thermax, Timken crack 44% from high; trade at multi-yr supports; what next?

Thermax was seen testing the super trend line support on the monthly scale for the first time since January 2021, while Timken India after September 2019; for trading guide check key levels here.

Shares of Thermax and Timken India have cracked around 44 per cent from their respective highs. Thermax has tumbled 44.6 per cent from its high of Rs 5,850 hit in July 2024; while Timken India stock has shed 43.8 per cent from its high of Rs 4,780 registered in June 2024.  Currently, both the stocks are seen testing support at their respective super trend line on the monthly scale. The key support for Thermax stands at Rs 3,265, and the stock has not violated this trend line support since January 2021 on a monthly closing basis. Whereas, Timken India is seen testing the trend line support after September 2019, which now stands at Rs 2,698.  Recently, Thermax reported a 51 per cent year-on-year (YoY) in Q3 net profit at Rs 116 crore on lower margins and higher-costs; thereby missing analysts’ estimates. The company had reported a net profit of Rs 238 crore in the year ago period, which included one-time gain of Rs 126 crore. Thermax revenue grew by 8 per cent YoY to Rs 2,508 crore.  On the other hand, Timken India posted a 10.1 per cent growth in Q3 net profit at Rs 74.30 crore for the quarter ended December 2024 as against Rs 67.50 crore in the year ago period. The company's revenue from operations increased by 9.7 per cent YoY to Rs 671.40 crore.    On Thursday, so far, Thermax stock was down 3.1 per cent at Rs 3,240, while Timken India shed 4.5 per cent at Rs 2,672 on the NSE. In comparison, the NSE benchmark the Nifty 50 index was down 0.4 per cent at 23,610.  Against this background, here's a technical outlook on Thermax and Timken as these stocks test multi-year support levels.  Thermax  Current Price: Rs 3,240  Upside Potential: 21.3%  Downside Risk: 17.4%  Support: Rs 3,265; Rs 3,050; Rs 2,815  Resistance: Rs 3,320; Rs 3,675  At present, Thermax stock is seen trading marginally below the monthly super trend line support. For the long-term bias to turn bearish, the stock will need to close below Rs 3,265 on a monthly basis. CLICK HERE FOR THE CHART  Technical chart shows that the near-term bias for Thermax is likely to remain negative as long as the stock trades below Rs 3,320; above which stiff resistance for the stock exists at Rs 3,675 and Rs 3,930 levels - thus implying potential upside of 21.3 per cent in case of a pullback rally.  Meanwhile, on the downside, sustained trade below Rs 3,265, opens the door for a likely slide towards the 200-WMA (Weekly Moving Average) placed at Rs 2,755 or deeper down towards the 50-MMA (Monthly Moving Average) at Rs 2,675 levels. Interim support for the stock can be expected around Rs 3,050 and Rs 2,815 levels.    Timken India  Current Price: Rs 2,672  Upside Potential: 22.8%  Downside Risk: 22.2%  Support: Rs 2,661; Rs 2,350  Resistance: Rs 2,745; Rs 2,825; Rs 3,040  Timken India is also seen trading marginally below the key monthly super trend line amid today's weakness at the counter. The monthly super trend line support nearly coincides with the 50-MMA support at Rs 2,661; thus making this support zone of key importance for the stock. Break and sustained trade below the same can trigger a fall towards Rs 2,080 levels; with interim support likely around Rs 2,350. CLICK HERE FOR THE CHART  For a relief rally to emerge, Timken stock will need to cross and sustain above the hurdle at Rs 2,745 on a consistent basis. Post which, the stock can potentially pullback to Rs 3,280 levels; with intermediate resistance likely around Rs 2,825 and Rs 3,040 levels.