Stocks to Watch: Volatility is expected to stay elevated in the markets in the coming days. On Friday, there was no specific trigger such as a spike in crude oil prices or any fresh statement from either side in the US-Iran conflict, yet the Indian markets still closed weaker.
This came at a time when most global markets were trading firmly in the green, indicating that the selling pressure was driven primarily by domestic factors.
Another phase of delivery-based selling
There is a strong likelihood of another phase of delivery-based selling as the market begins to factor in upcoming Q1 FY results, which are not expected to be strong. Investors should moderate short-term expectations and prepare for continued volatility.
The concern stems from the fact that the market’s worst fears have materialised. Oil prices are now largely above the $80 level, which is generally seen as the threshold that both fiscal stability and corporate earnings can comfortably absorb. Beyond this point, pressures begin to build on both macroeconomic and microeconomic fundamentals.
This is not the first instance of oil prices crossing the comfort threshold. However, the key difference this time is that the spike is driven by disruptions in the supply chain in the world’s major oil-producing region. As a result, it may take some time before prices return to normal levels.
What investors should consider?
In such a scenario, investors with surplus cash may consider focusing on companies undergoing structural transformation, where the underlying change is significant and likely to outlast short-term geopolitical disruptions.
Investors should also consider companies backed by strong parentage and robust balance sheets. Regardless of size, all firms face financial stress at some point, but those with stronger balance sheets are better positioned to withstand crises and navigate periods of market uncertainty.
Stocks to look for
ET has curated a list of five large and mid-cap stocks that have recorded an improvement in their average Stock Reports Plus score over a one-week period.
ET further evaluated whether these stocks offer strong upside potential over the next 12 months and enjoy analyst confidence. The selection includes only those stocks with an average recommendation rating of "Strong Buy", "Buy", or "Hold."
ET noted that the selected stocks span multiple sectors, including banking, auto, pharma, and others. These stocks had earlier undergone corrective phases and are now showing signs of recovery, in line with the broader market trend. However, it remains to be seen whether the improvement in scores will translate into stronger stock performance going forward.
The screening for these five stocks is based on data sourced from Refinitiv’s latest SR Plus report dated May 30, 2026.
Stock picks of the week
- Havells India | Recommendation - Buy | Upside Potential - 32 per cent
- Jio Financial Services | Recommendation - Strong Buy | Upside Potential - 28 per cent
- GlaxoSmithKline Pharma | Recommendation - Buy | Upside Potential - 25 per cent
- Maruti Suzuki India | Recommendation - Buy | Upside Potential - 23 per cent
- Kotak Mahindra Bank | Recommendation - Buy | Upside Potential - 22 per cent
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
For the trading week starting June 1, 2026, analysts have flagged a curated list of high-potential stocks to watch, backed by institutional accumulation, technical breakouts, and favorable risk-reward setups.
Leading large-cap analysts have highlighted a top list of 5 Nifty 50 large-caps positioned to outperform amidst broader market volatility, alongside several high-potential mid-and-small-cap picks seeing significant target upgrades.
📈 Top 5 Nifty 50 Picks to Watch This Week
Market experts from Univest have mapped out actionable buy zones and multi-level targets for five defensive and momentum setups based on institutional backing:
1. Bajaj Finance (BAJFINANCE) — The Valuation Play
May 29 Close: ₹909 | Buy Zone: ₹900 - ₹915
Targets: Target 1: ₹975 | Target 2: ₹1,020 (Stop-Loss: ₹875)
Upside Catalyst: It presents a compelling mean-reversion setup, trading roughly 14.6% below its 52-week high. Currently valued at 24x P/E (versus its 5-year average of 35-40x), it stands to benefit directly from an anticipated RBI rate cut cycle and a stable 25%–28% YoY Asset Under Management (AUM) growth trajectory.
2. Tech Mahindra (TECHM) — The Momentum Setup
May 29 Close: ₹1,480 | Buy Zone: ₹1,465 - ₹1,485
Targets: Target 1: ₹1,560 | Target 2: ₹1,610 (Stop-Loss: ₹1,430)
Upside Catalyst: The stock recently delivered a clean 200-DMA breakout. Demonstrating immense relative strength, it held flat during a recent broader market selloff—a clear indicator of institutional accumulation.
Margin recoveries and expanding GenAI-led business restructuring underpin its FY27 outlook.
3. HCL Technologies (HCLTECH) — The Value Pick
May 29 Close: ₹1,182 | Buy Zone: ₹1,170 - ₹1,190
Targets: Target 1: ₹1,260 | Target 2: ₹1,310 (Stop-Loss: ₹1,140)
Upside Catalyst: Trading near its 52-week low with a solid 3.2% dividend yield, HCL Tech offers a deep margin of safety. At 20x P/E, it sits at a substantial discount compared to peers like TCS and Infosys, bolstered by a robust GenAI project pipeline with Google, Microsoft, and SAP.
4. Bharti Airtel (BHARTIARTL) — The Event Catalyst
May 29 Close: ₹1,827 | Buy Zone: ₹1,810 - ₹1,830
Targets: Target 1: ₹1,900 | Target 2: ₹1,950 (Stop-Loss: ₹1,785)
Upside Catalyst: Consistently outperforming during market pullbacks, Airtel is riding on ARPU improvements via 5G expansion and home broadband dominance. An upcoming Extra Ordinary General Meeting (EGM) on June 12 acts as a key technical anchor.
5. Sun Pharmaceutical Industries (SUNPHARMA) — The Defensive Play
May 29 Close: ₹1,803 | Buy Zone: ₹1,790 - ₹1,810
Targets: Target 1: ₹1,890 | Target 2: ₹1,940 (Stop-Loss: ₹1,760)
Upside Catalyst: Serves as a strong defensive buffer against geopolitical uncertainty and macro pressures. Scaling global operations in its high-margin US specialty segments (such as Ilumya and Cequa) provides a steady earnings tailwind.
🚀 Broader Market High-Upside Picks (Up to 14%–15% Short-Term)
Beyond the main large-cap tracker, top institutional desks like Motilal Oswal and SBI Securities have pushed high-conviction structural buys for the week:
Astra Microwave (ASTRA):
CMP: ₹1,381 | Target: ₹1,580 (~14% upside). Motilal Oswal upgraded its estimates following massive 4QFY26 export momentum and incoming production orders for domestic defense radar and space programs. 
Shaily Engineering Plastics (SHEP):
CMP: ₹2,990 | Target: ₹3,404 (~14% upside). Benefiting heavily from global healthcare demands, specifically an explosion in orders for insulin and GLP-1 pens. Nuvama Wealth Management (NUVAMA):
Accumulate Zone: ₹1,550 - ₹1,560 | Target: ₹1,665. Staged a sharp 10.5% recovery off its 20-day EMA with a strong bullish RSI reading over 60. R R Kabel (RRKABEL):
Accumulate Zone: ₹2,050 - ₹2,060 | Target: ₹2,200. Triggered a massive consolidation breakout on May 29 supported by a substantial spike in volumes.
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