Stocks to buy on Monday: Analyst Sandeep Jain recommends these 3 stocks for gains

Indian stock markets exhibited nervousness over the truncated trading week as both Sensex and Nifty witnessed a three-day correction spree. On Thursday, the markets had to brave two factors – expiry day pressure and long weekend, according to Sandeep Jain, Director, Tradeswift Broking Pvt Ltd.

“There was some nervousness in the secondary markets because of the primary market which triggered profit booking during the week,” said Sandeep Jain.

The stock markets ended in the red on Thursday and fell on three consecutive occasions during the truncated trading week. The BSE Sensex ended at 59,636.01, down by almost 0.6 per cent or 372 points from the Wednesday closing level. Similarly, the 50-share Nifty50 ended down 113 points or 0.7 per cent at 17,764.80.

Over the weak, Sensex lost 1.75 per cent while the Nifty50 lost 2 per cent. Bank Nifty also ended below the 38,000 level, losing as much as 2 per cent during the week.

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Data suggests that Domestic Institutional Investors (DIIs) sold equities worth Rs 1885 crore during the week.

According to Sandeep Jain, despite correction trends in the overall markets, PSU Bank stocks inspired higher confidence especially Nifty PSU Bank leaders State Bank of India (SBI) and Punjab National Bank (PNB). 

The two stocks propelled the Nifty PSU Bank index on Thursday helping it to end positively, though only marginally. It ended at 2,812.10, up by a couple of points from the Wednesday closing. On Friday, the equity markets remained closed on account of Guru Nanak Jayanti. 

Sandeep Jain recommended the below given three stocks for Monday for gains.

SBI: Buy| LTP: Rs 503| Target: Rs 511/514| Stop Loss: Rs 497

The SBI stock ended up 1.1 per cent at Rs 503.80. It was recommended as an intraday Futures & Options (F&O) pick for a price target of Rs 511-514 and a stop loss of Rs 497.

SBI: Buy| LTP: Rs 1262| Target: Rs 1290/1320| Stop Loss: Rs 1240

Another stock picked by Jain was Krishna Institute of Medical Sciences (KIMS). The Tradeswift Broking Pvt Ltd Director suggested this stock as an intraday cash market pick. The stock ended at Rs 1262 on the NSE on Thursday, gaining almost 2.6 per cent or Rs 31 from the previous closing price.     

Menon Bearings: Buy| LTP: Rs 84.60| Target: Rs 105| Stop Loss: Rs 75| Upside: 24%

Jain recommended Menon Bearings as his positional term pick for Monday. The stock ended at Rs 84.60 on the NSE on Thursday, down by almost 2.4 per cent. The company manufactures engine bearings.