Sparagli outsprinted German John Degenkolb (Giant-Alpecin) to claim his first professional victory, with Spain's Jose Joaquin Rojas (Movistar) taking third place.
Dutchman Tom Dumoulin (Giant-Alpecin) retained the overall leader's red jersey at the end of a 146.6-km ride from Valencia to Castellon.
MTN-Qhubeka took their first grand tour victory during this year's Tour de France when Briton Stephen Cummings beat home favourites Thibaut Pinot and Romain Bardet in Mende last month.
MTN, however, announced after the Tour that they would end their sponsorship of the team at the end of the year.
Degenkolb was the pre-stage favourite on Monday but he started his final sprint in a bad position, finishing half a wheel behind the 25-year-old Sbaragli.
Tuesday is the first rest day before the peloton goes into the first high mountain stage on Wednesday.
