Query corner: Rain Commodities

VST Tillers Tractors (Rs 393): VST Tillers is in a fresh leg of its structural up-trend since this January. The stock has moved past its previous high of Rs 259 and is currently poised 50 per cent above this level.

The shallow correction witnessed since the July peak of Rs 467 implies that the up-move can resume after a protracted sideways move between Rs 320 and Rs 480. Investors can therefore hold the stock as long as it trades above Rs 320.

Subsequent supports are Rs 280 and Rs 230.Long-term targets on a break-out above Rs 480 are Rs 550 and Rs 690.

Rain Commodities (Rs 182.1): This stock too has done a marvellous job of clawing up from the abysmal depths it had sunk in the last quarter of 2008.

Rain Commodities is however closing in on the key resistance at Rs 212 and investors ought to take some money off the table if the stock fails to clear this level.

A reversal from here can result in the stock declining to Rs 150 or even Rs 110 over the medium-term. Stop-loss for investors can be at Rs 150.