. Daily Index Analysis - Global markets soar post-Fed, led by tech.

Daily Index Analysis – Global markets soar post-Fed, led by tech.

Daily Index Analysis – Global markets soar post-Fed, led by tech.

22 Mar 2024

Introduction:

In the global indices market, Asian equities present a mixed picture after Wall Street’s consecutive record highs. While some indices like Japan’s Nikkei 225 saw modest gains, others such as Hong Kong’s Hang Seng Index experienced declines. European markets also display a varied performance post-setting new record highs. Meanwhile, on Wall Street, optimism about rate cuts propels record highs, with the chip sector notably rallying after positive forecasts from Micron Technology.

Market In Focus for today – Nasdaq 100

After the conclusion of the Federal Reserve meeting, the NASDAQ 100 continues to exhibit remarkable bullish sentiment for the future.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18462.00 | Positive Crossover | Bullish
  • MA 20: 18356.63 | Positive Crossover | Bullish
  • MA 50: 18205.00 | Positive Crossover | Bullish

Simple:

  • MA 5: 18440.13 | Positive Crossover | Bullish
  • MA 20: 18298.00| Positive Crossover | Bullish
  • MA 50: 18204.08 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.15| Buying Zone| Buy

Stochastic Oscillator: 69.75| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 18706.72 | R2: 19154.14
  • S1: 18207.27| S2: 17718.23

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 18196.87 | Take Profit: 18675.50| Stop Loss: 17905.53.

S&P 500:

The S&P 500 could experience a pullback before it resumes its upward trajectory.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5276.74 | Positive Crossover | Bullish
  • MA 20: 5244.55 | Positive Crossover | Bullish
  • MA 50: 5184.75 | Positive Crossover | Bullish

Simple:

  • MA 5: 5273.09 | Positive Crossover | Bullish
  • MA 20: 5234.98| Positive Crossover | Bullish
  • MA 50: 5175.07 | Positive Crossover | Bullish

RSI (Relative Strength Index): 68.54| Bullish Zone| Positive

Stochastic Oscillator: 79.79| Bullish Zone | Negative

Resistance And Support Levels:

  • R1: 5315.27 | R2: 5398.60
  • S1: 5221.25| S2: 5110.14

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5186.55 | Take Profit: 5298.19| Stop Loss: 5122.96.

FTSE 100:

The FTSE 100 is poised for its second consecutive weekly advance on BoE’s dovish tilt.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7843.53 | Positive Crossover | Bullish
  • MA 20: 7802.56 | Positive Crossover | Bullish
  • MA 50: 7750.43 | Positive Crossover | Bullish

Simple:

  • MA 5: 7818.24 | Positive Crossover | Bearish
  • MA 20: 7787.13| Positive Crossover | Bearish
  • MA 50: 7729.93| Positive Crossover | Bullish

RSI (Relative Strength Index): 77.69| Buy Zone| Positive

Stochastic Oscillator: 98.15| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7987.4 | R2: 8057.8
  • S1: 7879.8| S2: 7786.7

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 7848.7 | Take Profit: 7966.7| Stop Loss: 7778.4.

EURO Stoxx 50:

European markets displayed a mixed performance on Friday morning following a session where stocks surged to reach a record high.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5038.61 | Positive Crossover | Bullish
  • MA 20: 5023.79 | Positive Crossover | Bullish
  • MA 50: 4972.91| Positive Crossover | Bullish

Simple:

  • MA 5: 5037.7| Positive Crossover | Bullish
  • MA 20: 5025.6| Positive Crossover | Bullish
  • MA 50: 4975.02| Positive Crossover | Bullish

RSI (Relative Strength Index): 53.27| Buy Zone| Bullish

Stochastic Oscillator: 35.02|Selling Zone | Negative

Resistance And Support Levels:

  • R1: 5083 | R2: 5154
  • S1: 4997 | S2: 4921

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5006 | Take Profit: 5088 | Stop Loss: 4956.

Elsewhere in the Indices Market:

Asian equities show a mixed performance following another day of record highs on Wall Street.

The Shanghai composite is down at 0.95%. Overall, the Singapore MSCI was up 0.05% to 293.15. Over in Hong Kong, the Hang Seng Index is down 2.16% to 16,499.47. In Japan, the Nikkei 225 was up 0.18% to 40,888.43, while the Topix index was up 0.61% to 2813.22. South Korea’s Kospi up 2.41% to 2,754.86. Australia S&P/ASX 200 is up 0.23% to, 7,840.5.

European markets exhibit a mixed performance after achieving new record highs.

The DAX futures contract in Germany traded 0.05 higher, CAC 40 futures in France down 0.25% to 8,159.36 and the UK 100 futures contract in the U.K. up 0.68% to 7,936.17.

Wall Street achieves record closing highs on rate-cut optimism; chip sector rallies.

For the second consecutive day, Wall Street’s three main stock indexes reached record closing highs as the Federal Reserve provided reassurance regarding potential rate cuts in the coming year. Additionally, chip stocks surged following a positive forecast from Micron Technology.

Indexes: Dow up 0.68%, S&P 500- up 0.32%, Nasdaq up 0.20%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.79% at 622.71, Tesla, Inc. (TSLA) is down 1.62% at 172.82, and Apple Inc. (AAPL) is down 4.09% at 171.37. Goldman Sachs Group Inc (GS) is up 4.35% at 413.71, and Morgan Stanley (MS) is up 2.24% at 93.40.

Key Economic Events & Data Release Today:

(GBP) Retail Sales (MoM) (Feb) Actual Forecast –0.4%, Previous 3.4% at 12:30.

(CAD) Core Retail Sales (MoM) (Jan) Forecast –0.4%, Previous 0.9% at 18:00.

(EUR) German Ifo Business Climate Index (Mar) Forecast 85.9, Previous 85.5 at 14:30

(USD) Fed Chair Powell Speaks at 18:30.