Anand Rathi's Ganesh Dongre Identifies Three Stocks for Investors to Consider on June 1, 2026

Indian Stock Market Experiences Volatile Trading Week

The Indian stock market witnessed a tumultuous trading week, ultimately closing in negative territory. The benchmark indices extended losses for a third consecutive session, with the Nifty slipping 0.72% to end at 23,547.75. The Sensex, on the other hand, declined 0.85% to close at 74,775.74. In contrast, the broader market demonstrated resilience, with the midcap index rising 0.54% and the smallcap index gaining 1.20%.

The market volatility was largely attributed to persistent foreign institutional investor (FII) outflows and profit booking in heavyweight stocks. Additionally, investors remained cautious due to uncertainty surrounding the ongoing negotiations between the United States and Iran. The NIFTY 50 closed the week at 23,547, declining 0.72%, while the Bank Nifty ended at 54,239, posting a modest gain of 0.34%. Sector-wise, power, automobile, banking, and realty stocks emerged as key outperformers, advancing nearly 2-4% during the week.

Market Outlook for Next Week

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Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, believes that the market sentiment has turned cautiously optimistic, with investors increasingly favoring a buy-on-dips strategy amid improving technical structures. However, the near-term outlook remains highly sensitive to global geopolitical developments, particularly updates related to the ongoing U.S.-Iran discussions.

The coming week is expected to be crucial as traders and investors closely monitor global cues, institutional activity, and macroeconomic developments. Market participants are advised to remain selective in stock picking, maintain disciplined risk management practices, and stay alert to news-driven volatility.

Technical Outlook

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On the technical outlook, Dongre noted that the Nifty witnessed short-covering activity during the monthly expiry within the broad trading range of 23,300-24,000. However, repeated profit booking at higher levels restricted upside momentum, causing the index to close below its weekly highs. The benchmark also failed to sustain above the crucial resistance zone of 24,000 during the week.

Immediate support is now placed in the 23,000-23,300 range, while the 24,000-24,300 band continues to act as a significant resistance area.

Recommendations

Tata Motors is recommended for purchase at ₹380-385, with a target price of ₹400 and a stop loss of ₹370. Muthoot Finance is also recommended for purchase at ₹3320-3350, with a target price of ₹3560 and a stop loss of ₹3260. Dabur India is recommended for purchase at ₹442-445, with a target price of ₹470 and a stop loss of ₹435.