Stocks to Buy – Analyst Sandeep Jain recommends buy on Emami, Honeywell Automation; sell on AU Small Finance Bank

Indian stock markets plunged on Friday, ending the week with four negative closings in the five trading sessions. Market Analyst Sandeep Jain called this a difficult week for the stock markets. The Sensex closed at 57,011, down by 889 points or 1.5 per cent while the Nifty50 ended at 16,985, down by 263 points or 1.5 per cent. Bank Nifty also witnessed a 900 points correction and settled down 2.5 per cent from the last closing on Thursday.

The stock markets look nervous and there is a strong resistance around 17,600. The Foreign Institutional Investors (FIIs) are also pulling their investments in the Indian equities. The FIIs turned out to be net sellers on the last trading day selling Indian equities worth almost Rs 2070 cr. The Domestic Institutional Investors (DIIs) bought equities worth Rs 1478 cr.

See Zee Business Live TV Streaming Below:

If the Nifty50 falls below 16,800, which was a recent low, a downside up to 16,500 and 16,300 will open, the Tradeswift Director said.

The investors must remain cautious and watch if the fall resumes when the domestic markets reopen on Monday.

He said that investors can still look for opportunities in certain stocks. He recommended three stocks – one each from the Futures & Options (F&O), and with long term and positional term views.  

AU Small Finance Bank: Sell| LTP: Rs 1105| Target: Rs 1070/1060| Stop Loss: Rs 1130| Downside 4%

His first pick was from F&O and it was an intraday ‘Sell’ recommendation. He suggested a sell on AU Small Finance Bank. The stock ended below an important support level on Friday, Jain said. While the stock is already corrected, weak closing and the existing Nifty Bank situation could offer opportunities.   

Emami: Sell| LTP: Rs 537| Target: Rs 590| Stop Loss: Rs 510| Downside 10%

The stock has been in news in the recent times and amid corporate actions in the company. The strong also held its ground despite a poor Friday market show and week FMCG segment. The stock was recommended at levels of Rs 537 for a target of Rs 590 and a stop loss of RS 510.

Honeywell Automation: Sell| LTP: Rs 40,401| Target: Rs 46,450/46,750| Downside 16%

Another stock picked by him was Honeywell Automation, which he said was an excellent stock. The company is an MNC. The company has witnessed strong growth over the years and is a big beneficiary of many government initiatives. It is a zero-debt company and has retuned 25-26 per cent on the capital employed. The promoters have a 75 per cent shareholding. It has already corrected.  

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)