Stocks to buy on 1 June: Domestic equity benchmarks, the Sensex and Nifty 50, ended sharply lower on Friday, 29 May, after a sudden sell-off in the final hour of trade wiped out early-session gains.
The benchmark indices traded within a narrow range for most of the session as investors remained cautious amid lingering uncertainty over a potential US-Iran agreement. However, heavy selling pressure emerged towards the close, dragging the Sensex down nearly 1,300 points intraday and pulling the Nifty 50 to a low of 23,485.
The BSE Sensex eventually settled 1,092 points, or 1.44%, lower at 74,775.74, while the NSE Nifty 50 declined 359 points, or 1.50%, to close at 23,547.75.
The weakness extended to the broader market as well, with the BSE 150 Midcap index falling 1.25% and the BSE 250 Smallcap index losing 0.61% amid profit booking across segments.
The sharp decline eroded investor wealth by nearly ₹6 lakh crore, with the total market capitalisation of BSE-listed companies dropping to about ₹465 lakh crore from nearly ₹471 lakh crore in the previous session.
What Gift Nifty live chart signals?
The Gift Nifty Live Chart shows a negative start for the Indian stock market today. By 7:42 AM, the Gift Nifty was trading around the 23,726.5 level, a discount of 22.3 points from the Nifty futures’ previous close of 23,748.80.
Decoding the impact of Gift Nifty live chart and other triggers on Dalal Street, Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, Indian equities are likely to start the first trading session of June on a flat-to-mildly positive note. While Gift Nifty initially indicated stronger gains overnight, most of those advances have faded, with the contract currently trading around the 23,588 mark against Friday’s Nifty close of 23,547. This suggests that markets may open with a positive bias, but follow-through buying will remain crucial.
A key variable this month will be institutional flows. Foreign Institutional Investors (FIIs) ended May as aggressive net sellers, a factor that has remained one of the biggest reasons behind the market’s inability to sustain rallies. Any improvement in global risk appetite or moderation of geopolitical concerns could encourage fresh FII participation and support the market.
Domestic Institutional Investors (DIIs) continue to remain the strongest pillar for Indian equities. With net inflows of over ₹82,000 crore in May, domestic money has consistently absorbed foreign selling pressure and prevented deeper market corrections. As long as domestic liquidity remains strong, downside risks may remain relatively contained.
Global cues are mixed but broadly supportive. South Korea’s benchmark index continues to trade near record highs, led by strength in technology heavyweights, while Japanese markets remain relatively stable. The resilience across Asian equities suggests investors are gradually looking beyond near-term geopolitical uncertainty and focusing on structural growth themes, particularly technology and exports.
Stocks to buy today
Regarding stocks to buy today — Raja Venkatraman is Co-founder of NeoTrader, and stock research platform MarketSmith India, recommended buying these five shares – Ltd, Ltd, Ltd, Ltd, and Ltd.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Lodha Developers Ltd (Cmp ₹938.10)
Why it’s recommended: Lodha is one of India’s largest multinational real estate companies. It develops residential, commercial, and industrial properties. These elements directly dictate profit margins and long-term financial stability. The stock has declined by more than 70% from its highs, made a V-shaped recovery in the last few weeks, and has moved out of the cloud region. With the upcoming RBI policy, we are seeing some interest in rate-sensitive counters. The reaction to every swing pullback augurs well for going long.
Key metrics:
P/E: 32.10,
Volume: 9.14M
Technical analysis: Support at ₹850, resistance at ₹1,085.
Risk factors: Reliance on unsecured retail portfolios, microfinance exposure, and operational risks.
Buy : above ₹940.
Stop loss: ₹905.
Target price: ₹1,040 (2 Months)
Asian Paints Ltd (Cmp ₹2671.60)
Why it’s recommended: Asian Paints is India’s largest and the world’s 8th-largest decorative coatings company. Beyond paints, it offers home decor, modular kitchens, and expert painting service. Forming an inverted Head and Shoulders pattern, the strong breakout is fuelling strong upward momentum. The relative Strength index is also seen heading higher, suggesting some upward momentum; one can consider going long.
Key metrics:
P/E: 67.89,
52-week high: ₹2985.70,
Volume: 1.56M.
Technical analysis: Support at ₹2,500, resistance at ₹2,900.
Risk factors: Raw material inflation driven by crude oil, and rural demand slowdowns. Investors should closely monitor commodity cycles and market share retention.
Buy : above ₹2,680
Stop loss: ₹2,600
Target price: ₹2,850 (2 Months)
Tejas Networks Ltd (Cmp ₹520.40)
Why it’s recommended: Tejas Networks Ltd is an Indian telecom and networking products company under the Tata Group. They design, develop, and manufacture 4G/5G radio access, fibre broadband (GPON/XGS-PON), and optical transmission equipment for telecom service providers, utilities, and governments globally. After a sharp decline, we can see that prices have now shown support emerging from the cloud, forming rounding patterns. With a strong close on the daily charts, we can now look to invest for the short term, as momentum is picking up. The steady rise in the Relative Strength Index after stabilising at the neutral zone suggests that we could be looking at some upside.
Key metrics:
52-week high: ₹749.95
Volume: 14.29M
Technical analysis: Support at ₹460, resistance at ₹625.
Risk factors: Severe financial strain with persistent operating losses, heavy reliance on unpredictable government contracts (like BSNL), and significant working-capital lockups
Buy : above ₹525
Stop loss: ₹490.
Target price: ₹590.
Two stock recommendations by MarketSmith India
Buy: Neogen Chemicals Ltd (current price: ₹1,863)
Why it’s recommended: Strong specialty chemicals portfolio, growing presence in lithium chemicals, beneficiary of EV battery ecosystem growth, high entry barriers in niche products, diverse customer base, strong R&D capabilities, expansion into advanced chemical segments, import substitution opportunity, long-term demand visibility, increasing export opportunities, focus on value-added products, beneficiary of China+1 theme, capacity expansion supporting growth, strong industry tailwinds, and improving product mix potential
Key metrics: P/E: 171.01, 52-week high: ₹1,887.00, volume: ₹35.52
Technical analysis: Tight range breakout
Risk factors: Raw material price volatility, dependence on lithium market dynamics, execution risk in capacity expansion, regulatory and environmental compliance risks, high competition in specialty chemicals, demand slowdown in end-user industries, margin pressure from input costs, customer concentration risk, project delay risk, working capital intensive operations, forex fluctuation impact, technology and process risks, global economic slowdown affecting demand, cyclical downturn in chemical markets, and valuation risk during weaker growth periods.
Buy: ₹1,844–1,872
Target price: ₹2,200 in two to three months
Stop loss: ₹1,730
Buy: Tamil Nadu Mercantile Bank Limited (current price: ₹692)
Why it’s recommended: Strong asset quality profile, healthy CASA base, consistent profitability track record, strong presence in South India, conservative lending approach, healthy capital adequacy, strong return ratios (ROA/ROE), low NPA levels, growing retail loan portfolio, stable deposit franchise, improving digital banking capabilities, well-established regional brand, strong net interest margins, focus on secured lending, and attractive valuation relative to peers.
Key metrics: P/E:8.04, 52-week high: ₹770.00, volume: ₹23.12 crore
Technical analysis: Reclaimed its 21-DMA
Risk factors: Geographic concentration risk, intense competition from larger banks, slower growth compared to private banks, interest rate cycle impact, credit cost escalation risk, dependence on regional economic activity, CASA growth pressure, regulatory compliance risks, margin pressure from deposit costs, rising competition for deposits, economic slowdown affecting asset quality, technology and cybersecurity risks, limited diversification across regions, talent acquisition and retention challenges, and valuation re-rating may be gradual.
Buy at: ₹685–695
Target price: ₹1,790 in two to three months
Stop loss: ₹660
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.