Stocks to Buy, Sell on Monday: Buy EID Parry, Sell Aarti Industries, says this analyst; here is why!

Stocks to Buy on Monday: Expert Sandeep Jain said that people must brace up for uncertainties in the domestic stock markets over the next 3-4 trading sessions as markets might be seen making adjustments to the new margin rules. Jain called the Friday session strange adding that the markets opened strongly amid positive global cues. The declines began in the second session and one of the reasons for it could be the new margin rules that come into effect from Monday.

He recommended EID Parry India Limited as his positional term buy. He said that crude oil can be seen coming back to action anytime soon and sugar stocks will come into focus. Calling, it a fantastic company, the Tradeswift Director said that the current chart structure suggests an upward move. He puts price target of Rs 545 and Rs 552 with positional term view, suggesting a buy when markets reopen on Monday.

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He puts a stop loss at Rs 527. The EID Parry shares ended at Rs 535 on the NSE, gaining almost 1.6 per cent from the last closing price of Thursday.

Considering the market condition, he did not give an intraday pick from the cash market segment.

He gave a sell call for Aarti Industries stock for Monday trade. Aarti Industries shares ended flat at Rs 885.90 on the NSE. He puts a price target of Rs 850 while the top loss of Rs 905.   

Indian Stock markets ended the week in red. The BSE Sensex fell over 460 points or 0.8 per cent to settle at 57060.87 while the Nifty50 ended at 17102.55, falling down by 142 points or 0.8 per cent. Bank Nifty fell nearly 1 per cent or by 334 points to close at 36088.15.

The correction was witnessed even in the broader markets as Nifty Midcap 100 declined by over 250 points to end the last weekly trading session at 29880.35.

Also Read: Stock Markets on Monday: No clear cues on direction despite a two-week consolidation; wait for decisive breakout from 6,800-17,300 zone in Nifty, says expert
The Foreign Institutional Investors (FIIs) were net sellers on Friday and sold Indian equities worth Rs 3648 cr in the cash market. Meanwhile, the Domestic Institutional Investors (DIIs) bought shares worth Rs 3490. 

Not everything was negative as Volatility Index or VIX came down below 20, which is a good sign, the Tradeswift Director said while speaking to Zee Business’ Swati Raina in the popular TV show BazaarAgleHafte (#BazaarAgleHafte).