VST Tillers

VST TILLERS CMP 2420 : Expecting it to touch 5000 by December 2018. A risk worth taking. Analysis given below.

VST Tillers Tractors Limited is engaged in the manufacturing of power tiller and tractor. The Company operates through the manufacturing and trading of agriculture machinery segment. Its products include rice transplanter, power reaper, engines, precision/auto components and agriculture implements. Its power tillers include Mitsubishi Shakti VWH 120 Power Tiller and VST Shakti 130 DI Power Tiller. Its tractors include VST Mitsubishi Shakti VT 224-1D, Mitsubishi Shakti MT 180D Tractor, VST Shakti MT180D/JAI-2W and VST Shakti MT 270-VIRAAT 4W. The Company also offers VST Shakti VS-4PR(n) Power Reaper and VST Yanji Shakti 8 Row Paddy Transplanter. Its engines include K3C Engine, V3D Engine, 130DI Engine and VWH 120 Engine. Its precision/auto components include diesel engine components and light engineering components. The Company's agriculture implements include cage wheel, 5 tyne cultivator, plough, ridger, extension wheel, sprayer unit and spring loaded cultivator

As Indian Budget is approaching, and we all know that this time Government will focus majorly on Rural side and many Fertilizers, Irrigation and tractors based stocks will rally after budget, But we know that will going to happen, then why not to make a position before that.

Fundamentally it’s good enough to Invest and Hold for Long term, Technically there are many things to watch for before Investing and From my all my technical giving buy signal.

1. Cup and Handle formation on Monthly chart:

As we can see in the above Chart there is Cup and Handle formation in VST tillers monthly chart. A perfect Cup and Handle is when Fibonacci also support that, As per my 6 years experience in Stock market, I made my own theory of Testing technical twice before Investing in Stocks.

I always go with Fibonacci when there is cup and handle to make sure it is going to hit out target. For Testing Cup and handle with Fibonacci We are going to see the retracement level of Bottom of the cup ( the lowest level it touch on bottom of cup) and top of the cup ( the highest level it touch in top of the cup)

2. Fibonacci Retracement

As we apply Fibonacci we can see it is giving support at 38.2% and at the same time it supporting the handle of cup. This way we can ensure the patterns works in market very well.

3. Channel formation

Channel it self says that stock is good enough to be in channel. It is just waiting for some good news so that it can break the channel from up side and start new rally.

4. Bollinger Bands

After Consolidation of Bollinger bands for nearly 11 months, Now it also start expanding, Next 6–10 months we can see more expansion in the price of VST tillers.

4. Parabolic Sar

Parabolic Sar also giving same answer of rally in coming months.

After applying so many technical and all are giving same answer to Buy and Hold for Long term, and If you can hold for long term then why not to enjoy 100% return in fundamentally strong stock.

Happy Investing