CESC and Tata Sponge are two stock picks for morning trade: Manas Jaiswal

In a chat with ET Now, Manas Jaiswal, Manas Jaiswal Technical Research Group, says one can take a long call in Nifty. Edited excerpts

ET Now: Technically, would you look at this rally as a weak one?

Manas Jaiswal: No. Last week Nifty made a dark cloud cover pattern on the weekly charts and we witnessed some correction. Nifty took support near to 38.20 per cent level of previous rally, from 7700 to 8300. Now, today, it broke the resistance of 8150-8160 with great volumes. I think this higher top, higher bottom trend will continue in the coming days also and if you are talking about next two to three trading sessions, I think Nifty can test its previous high of 8294. So on correction near to 8160-8180, one can take a long call in Nifty and keep a stop loss below 8100.

ET Now: Help our viewers with strategies to approach trade today.

Manas Jaiswal: First is CESC that is buy a call because stock is making higher tops and higher bottoms from the level of 425. For last one month, stock is facing lot of resistance near to Rs 550 but today it broke that resistance with great volumes. It can come up to around Rs 605. So, one can buy CESC at current levels with the stop loss of Rs 572.

The second buy call is on Tata Sponge where stock is making higher tops and higher bottoms in the weekly charts. Today, it broke the resistance of Rs 650 with great volumes, so now stock can test its 61.80 per cent level of entire call from Rs 940 to Rs 325. So one can buy Tata Sponge at current levels and keep a stop loss below Rs 639.