Here are two stocks to trade in long term: Manas Jaiswal

In a chat with ET Now, Manas Jaiswal, Manas Jaiswal Technical Research Group, says Yes Bank and Bata are the two stocks that you can buy in the long term.

Edited excerpts:


What a struggle the last week has been, we have just managed to defend 8900 on one end and on the other 9000 really seemed like a distinct possibility. What is your sense and how is the Nifty chart pattern shaped up for Tuesday morning?

Nifty is facing a lot of resistance near the 9000 mark but it is continuously taking support near 8850-8860. So I feel this is a sideways correction after a smart rally on Nifty. I still believe that Nifty can break 9000 mark very soon and I still maintain my target of 9100 on Nifty for around for one to two weeks time. I hope Nifty will break 9000 on Tuesday. I just recommend to buy Nifty even at current levels and keep the stop loss below 8850 and the first short term target near 9100.

Does it seem like these stocks would be pressured in the days to come too?

Possible, because see we have already witnessed a smart rally in Mannpuram where the stock rallied from the level of Rs 60 to 102 but two days back, the stock broke the support of Rs 95 and today it broke its 50-day moving average also. So, the possibility is high that we may see more correction on Mannapuram and the stock can come down to around Rs 78-79 in the next week or two. But if you are a long or a medium term trader or investor, then you can definitely take a bet on Mannapuram on lower levels near 70 or may be Rs 80 because the stock has a lot of support over there and the long term charts are still very much bullish. So on decline near Rs 78 or maybe Rs 80, you can invest money for long term. But short term, the trend is weak and the possibility is high that the stock can correct Rs 10 more from the current levels.

What are the stocks that you are recommending?

Two buy recommendations. First is Yes Bank where the stock was facing a lot of resistance near Rs 1450-1460 for the last three weeks but this week it broke that resistance with decent volumes. I am expecting further upmove in Yes Bank. The possibility is high that the stock can test Rs 1525 very soon. Here one can take a long call and keep the stop loss below Rs 1460.

The second call is a buy on Bata. Bata is continuously taking support near the 200-day moving average and today it bounced back sharply from the lower levels. Yes the stock has some resistance near Rs 510, but looking at the pattern, this time it can break Rs 510 and the stock can touch Rs 530.

So take a long call, keep the stop loss below Rs 495.