Stocks to buy or sell: Dharmesh Shah of ICICI Sec suggests buying Tata Power, Sona BLW shares on 1 June

Stock market today: Indian benchmark indices opened higher on Monday, 1 June, supported by post-earnings gains in stocks such as IndiGo and Asian Paints, while the broader market attempted a recovery after Friday's sharp sell-off.

The NSE Nifty 50 rose 0.38% to 23,628.20, while the BSE Sensex gained 0.36% to 75,043.35 in early trade.

The rebound comes after both benchmark indices tumbled around 1.5% on Friday, a session marked by record foreign portfolio outflows of $2.22 billion and the highest-ever turnover on the National Stock Exchange (NSE).

Positive sentiment across Asian markets also aided domestic equities, with major indices in Japan, Hong Kong, and South Korea trading firmly higher.

Meanwhile, Brent crude oil hovered around $93 per barrel as investors closely tracked developments in the ongoing US-Iran peace negotiations. Market participants noted that key technical levels will be crucial in determining whether the current recovery can sustain momentum in the sessions ahead.

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

1. Equity benchmark concluded monthly expiry week on a subdued note. Nifty 50 lost 0.6% to settle the week at 23548. Midcap index endured its northbound journey by clocking fresh All Time high. Midcap and small-cap indices outperformed, gaining 0.7% and 1%, respectively. Sectorally, PSU Bank, Auto, Metal outshone while defensive sectors like FMCG, pharma remained laggards.
2. The index witnessed a gap-up opening. However, lack of follow-through strength above the psychological mark of 24,000 resulted in profit booking that dragged the index downward and filled the gap. Consequently, weekly price action formed a bear candle with a higher high-low, indicating profit booking at higher levels. This price action successfully established a higher base above the rising trend line drawn adjoining April-May lows.
3. The index is undergoing a healthy consolidation in the 23,800-23,200 zone that has set the stage to gradually head toward the 24,500 level in the coming Month. In the process, strong support is placed at 23,200. Our constrictive bias is based on following observations:

a) Key index heavy-weight sectors like Banking, Auto, Capital goods have formed a higher base while, beaten down IT index found supportive efforts from decade long rising trend line, highlighting revival in key index heavy weights

b) Going ahead, any positive trigger on domestic or global front would reignite catch up activity in the domestic markets as global peers like the S&P 500, Nikkei, and Kospi are already trading at record highs

c) Brent crude oil has broken down below its one-month rising trendline support. This accelerating decline in global crude prices is highly beneficial for a major importing nation like India

d) Better-than-expected corporate earnings season has provided a cushion for the broader market, driving improvements in market breadth over the last six weeks as % of stocks sustaining above 50- & 200-days SMA has improved from 63% and 35% to 68% and 45%, respectively

e) Broad-market indices continue to validate the bullish sector rotation. Following a three-week consolidation phase, the Nifty Midcap index has successfully resumed its upward trajectory to register new historic highs. Meanwhile, the Smallcap index has revived its upward trend after forming a higher base near its 52-week EMA, yet 8% way from All-time High. The improvement in market breadth validates catch up activity of the small cap space

Key Monitorable:

a) Auto Sales Numbers

b) RBI Policy

c) IIP Data

d) Falling crude oil & US 10-year treasury yield would fuel momentum in the Indian market

Stock To Buy This Week - Dharmesh Shah

Dharmesh Shah of ICICI Securities recommends buying Tata Power, and Sona BLW Precision Forgings.

Buy Tata Power in the range of ₹412-424. He has Tata Power share price target of ₹470 with a stop loss of ₹392.

Buy Sona BLW Precision Forgings in the range of ₹600-610. He has Sona BLW Precision Forgings share price target of ₹660 with a stop loss of ₹588.

Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 29/05/2026 or have no other financial interest and do not have any material conflict of interest.

The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.