. Daily Index Analysis - China's surge, Powell's hints propel markets, Nasdaq rises.

Daily Index Analysis – China’s surge, Powell’s hints propel markets, Nasdaq rises.

Daily Index Analysis – China’s surge, Powell’s hints propel markets, Nasdaq rises.

06 Feb 2024

Introduction:

In the indices market, Asian performances are mixed, with China rising after a state fund announces its intent to purchase stocks. The Shanghai composite is up by 3.23%, while European stocks decline due to dashed rate cut expectations leading to higher yields. U.S. stocks also face a downturn as Treasury yields rise following Powell’s suggestion that a March rate cut is improbable.

Market In Focus for today – Nasdaq 100

Currently, the NASDAQ 100 lingers near the upper limit of a consolidation range. Sustaining and cultivating upward momentum requires a revival of enthusiasm among traders, a recurring pattern evident in historical market behavior.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17693.47 | Positive Crossover | Bullish
  • MA 20: 17573.28 | Positive Crossover | Bullish
  • MA 50: 17430.18 | Positive Crossover | Bullish

Simple:

  • MA 5: 17704.24 | Positive Crossover | Bullish
  • MA 20: 17573.20| Positive Crossover | Bullish
  • MA 50: 17430.15 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.59| Buy Zone| Bullish

Stochastic Oscillator: 95.52| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 17761.54 | R2: 17962.58
  • S1: 17495.17| S2: 17263.98

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy : 17510.25 | Take Profit: 17761.54| Stop Loss: 17369.53.

S&P 500:

In spite of robust ISM Services PMI signalling economic strength, the S&P 500 encountered resistance, highlighting a mixed sentiment among investors.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4962.86 | Positive Crossover | Bullish
  • MA 20: 4933.52 | Positive Crossover | Bullish
  • MA 50: 4891.53 | Positive Crossover | Bullish

Simple:

  • MA 5: 4962.84 | Positive Crossover | Bullish
  • MA 20: 4933.50| Positive Crossover | Bullish
  • MA 50: 4881.88| Positive Crossover | Bullish

RSI (Relative Strength Index): 57.99| Bullish Zone| Positive

Stochastic Oscillator: 76.13| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4997.27 | R2: 5081.55
  • S1: 4949.51| S2: 4837.14

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 4865.84 | Take Profit: 4980.41| Stop Loss: 4797.81.

FTSE 100:

FTSE-100 is cautiously advancing as investors evaluate the implications of Powell’s hawkish comments in the context of robust corporate earnings.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7654.68 | Positive Crossover | Bullish
  • MA 20: 7661.09 | Positive Crossover | Bullish
  • MA 50: 7385.41 | Positive Crossover | Bullish

Simple:

  • MA 5: 7647.00 | Positive Crossover | Bullish
  • MA 20: 7661.09| Positive Crossover | Bullish
  • MA 50: 7585.94| Positive Crossover | Bullish

RSI (Relative Strength Index): 57.94| Buying Zone| Buy

Stochastic Oscillator: 19.15| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 7673.3 | R2: 7779.2
  • S1: 7612.3| S2: 7538.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy : 7694.8 | Take Profit: 7779.2| Stop Loss: 7644.6.

EURO STOXX 50:

European stocks saw a modest uptick on Tuesday, with BP’s impressive earnings offsetting losses in UBS and Nordic Semiconductor.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4678.40 | Positive Crossover | Bullish
  • MA 20: 4672.05 | Positive Crossover | Bullish
  • MA 50: 4574.07 | Positive Crossover | Bullish

Simple:

  • MA 5: 4674.08| Positive Crossover | Bullish
  • MA 20: 4672.03| Positive Crossover | Bullish
  • MA 50: 4574.32| Positive Crossover | Bullish

RSI (Relative Strength Index): 61.44| Positive Zone| Bullish

Stochastic Oscillator: 24.22|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 4694 | R2: 4749
  • S1: 4629| S2: 4569

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 4634 | Take Profit: 4694| Stop Loss: 4597.

Elsewhere in the Indices Market:

Asian markets exhibit a mixed performance, With China up After State Fund Says It Will Buy Stocks.

The Shanghai composite is up at 3.23%. Overall, the Singapore MSCI up 0.10% to 275.93. Over in Hong Kong, the Hang Seng Index up 4.04% to 16,136.87. In Japan, the Nikkei 225 down 0.53% to 36,160.66, while the Topix index was down 0.68% to 2539.25. South Korea’s Kospi down 0.58% to 2,576.20. Australia S&P/ASX 200 down 0.58% to, 7,581.60.

European stocks decline as dashed expectations for a rate cut lead to higher yields.

The DAX futures contract in Germany traded 0.13 lower, CAC 40 futures in France up 0.15% to 7,601.19 and the UK 100 futures contract in the U.K. up 0.45% to 7,647.42.

U.S. stock decline as Treasury yields rise.

On Monday, U.S. stocks faced a decline as Treasury yields surged, prompted by Federal Reserve Chair Jerome Powell’s indication that a rate cut in March is unlikely to occur.

Indexes: Dow down 0.66%, S&P 500- down 0.41%, Nasdaq down 0.45%.

Corporate News:

Netflix, Inc. (NFLX) down 0.46% at 562.06, Tesla, Inc (TSLA) down 3.65% at 181.06, Apple Inc. (AAPL) up 0.98% at 187.68. Goldman Sachs Group Inc (GS) down 1.25% at 383.02, Morgan Stanley (MS) down 1.58% at 85.89.

Key Economic Events & Data Release Today:

(CAD) Ivey PMI (Jan) Forecast 55.0, Previous 56.3 at 10:00.

(CAD) Building Permits (MoM) (Dec) Forecast 1.8%, Previous –3.9% at 08:30.

(NZD) Employment Change (QoQ) (Q4) Forecast 0.3%, Previous –0.2% at 16:45.