According to reports from Mint, frontline indices, the Sensex and Nifty 50, erased gains seen in early deals on Tuesday due to profit booking amid rising oil prices and anticipation of a rate hike by the US Federal Reserve on Wednesday. The Sensex declined nearly 200 points, while the Nifty touched an intraday low of 23,317 in the morning session on Tuesday. As per J.P. Morgan Wealth Management, the stock market often moves more based on Federal Reserve forward guidance than on the rate decision itself. In an analysis of FOMC decisions from December 1999 through July 2026, the S&P 500's average decision-day move was a gain of 0.23%, and the market was positive 52.6% of the time. However, historically, market reactions to Federal Reserve decisions are context-driven, with stocks tending to struggle when Fed policy tightening coincides with rising recession risk and falling earnings expectations.
As reported by Mint, Vishnu Kant Upadhyay of Master Capital Services and Sachin Gupta of Choice Broking have recommended six stocks for short-term investment over the next 1-2 weeks. The recommendations include Varun Beverages (VBL) with target prices of ₹455 and ₹465 and Power Grid Corporation of India with targets of ₹292 and ₹298. Additionally, the experts suggest One 97 Communications (Paytm) with targets of ₹1,960 and ₹1,990, Newgen Software Technologies with a target of ₹565, IDBI Bank with a target of ₹94, and Info Edge (Naukri) with a target of ₹1,400. Despite recent AI development warnings, analysts believe these concerns are more about shaping regulatory frameworks rather than slowing down the AI investment cycle. According to J.P. Morgan, companies with stronger balance sheets and more resilient cash flows may be better positioned when financing costs are higher and uncertainty rises.
According to Upadhyay's analysis reported by Mint, VBL is attempting to form a base around the ₹390 - ₹400 zone, which has acted as an important historical support area. The recent stabilisation near these levels indicates emerging buying interest after the prolonged corrective phase. The daily chart is exhibiting a bullish RSI divergence, suggesting improving underlying momentum despite price weakness. Upadhyay noted that a sustained hold above the ₹390 zone could trigger a recovery towards the stock's short-term moving averages.
As reported by Mint, Paytm shares have maintained a strong uptrend, with the stock recently breaking above its previous swing high, confirming continued buying interest. The price structure remains positive marked by consistent formation of higher highs and higher lows. Power Grid shares have rebounded sharply from near the 200-week EMA and shown signs of a short-term trend reversal after a prolonged downward phase. The stock has also reclaimed its 21 EMA, reflecting improving near-term price strength with momentum indicators supportive.
According to Gupta's recommendations reported by Mint, IDBI Bank has shown positive price setup after bouncing from a major support zone with the stock trading well above its 50-day and 100-day EMAs. Info Edge (Naukri) has shown positive setup after taking a retracement on the weekly timeframe and finding support near its 50-day EMA on the daily chart. The RSI indicators across these stocks range from neutral to positive momentum bias, suggesting scope for further improvement if buying interest continues. As per J.P. Morgan, appropriate allocations across equities, high-quality fixed income and liquidity can help manage both opportunity and downside, depending on an investor's objectives and risk tolerance.
