. Daily Index Analysis - Investors brace for pivotal central bank decisions.

Daily Index Analysis – Investors brace for pivotal central bank decisions.

Daily Index Analysis – Investors brace for pivotal central bank decisions.

18 Mar 2024

Introduction:

Asian markets are on the rise, with investors eagerly awaiting interest rate announcements from the United States and Japan. While the Shanghai composite climbs by 0.99%, European equities show a decline as attention shifts to the upcoming Federal Reserve meeting. In the U.S., stock futures display a mixed trend as investors anticipate the Fed’s rate decision amidst concerns over heightened inflation.

Market In Focus for today – Nasdaq 100

The Nasdaq 100 maintains its position at trend line support, signaling stability in the market.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18139.92 | Positive Crossover | Bullish
  • MA 20: 18128.54 | Positive Crossover | Bullish
  • MA 50: 18068.46 | Positive Crossover | Bullish

Simple:

  • MA 5: 18131.37 | Positive Crossover | Bullish
  • MA 20: 18105.07| Positive Crossover | Bullish
  • MA 50: 18100.08 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.59| Buying Zone| Buy

Stochastic Oscillator: 49.89| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 18311.77 | R2: 18690.67
  • S1: 17857.82| S2: 17262.00

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 17894.84 | Take Profit: 18367.24| Stop Loss: 17591.16.

S&P 500:

On Monday, the S&P 500 climbed in anticipation of the upcoming Federal Reserve meeting scheduled for later this week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5187.53 | Positive Crossover | Bullish
  • MA 20: 5171.67 | Positive Crossover | Bullish
  • MA 50: 5132.51 | Positive Crossover | Bullish

Simple:

  • MA 5: 5187.82 | Positive Crossover | Bullish
  • MA 20: 5165.39| Positive Crossover | Bullish
  • MA 50: 5132.38 | Positive Crossover | Bullish

RSI (Relative Strength Index): 62.05| Bullish Zone| Positive

Stochastic Oscillator: 39.54| Bullish Zone | Positive

Resistance And Support Levels:

  • R1: 5227.40 | R2: 5331.84
  • S1: 5057.96| S2: 4933.95

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5119.88 | Take Profit: 5220.98| Stop Loss: 5062.74.

FTSE 100:

On Monday, the UK’s FTSE 100 edged up as energy stocks mirrored the rise in crude prices. However, investor wariness ahead of domestic inflation data and significant central bank announcements limited the extent of the gains.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7758.18 | Negative Crossover | Bearish
  • MA 20: 7737.04 | Positive Crossover | Bullish
  • MA 50: 7705.34 | Positive Crossover | Bullish

Simple:

  • MA 5: 7767.74 | Negative Crossover | Bearish
  • MA 20: 7739.26| Positive Crossover | Bullish
  • MA 50: 7701.74| Positive Crossover | Bullish

RSI (Relative Strength Index): 56.92| Buy Zone| Positive

Stochastic Oscillator: 21.01| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 77801.4 | R2: 7884.7
  • S1: 7702.3| S2: 7620.4

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: StopBuy: 7721.4 | Take Profit: 7809.0| Stop Loss: 7675.6.

DAX 40:

The DAX 40’s push beyond the minor psychological barrier of 18,000, reaching last week’s record high close near 18,050, is still active as investors await Tuesday’s release of the German ZEW March economic sentiment indicator.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18006.76 | Positive Crossover | Bullish
  • MA 20: 17943.66 | Positive Crossover | Bullish
  • MA 50: 17758.54| Positive Crossover | Bullish

Simple:

  • MA 5: 18014.12| Positive Crossover | Bullish
  • MA 20: 17926.02| Positive Crossover | Bullish
  • MA 50: 17773.24| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.58| Buy Zone| Bullish

Stochastic Oscillator: 45.09|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 18095.1 | R2:18357.2
  • S1: 17804.8 | S2: 17493.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 17712.7 | Take Profit: 18010.1 | Stop Loss: 17500.2.

Elsewhere in the Indices Market:

Asian equities rise in anticipation of upcoming interest rate decisions in the United States and Japan.

The Shanghai composite is up at 0.99%. Overall, the Singapore MSCI is down 0.58% to 290.00. Over in Hong Kong, the Hang Seng Index is up 0.10% to 16,737.12. In Japan, the Nikkei 225 was up 2.67% to 39,740.44, while the Topix index was up 1.92% to 2721.99. South Korea’s Kospi up 0.71% to 2,685.84. Australia S&P/ASX 200 is up 0.072% to, 7,675.80.

European equities decline as investors focus on the Federal Reserve meeting ahead.

The DAX futures contract in Germany traded 0.21 higher, CAC 40 futures in France up 0.07% to 8,170.25 and the UK 100 futures contract in the U.K. up 0.15% to 7,738.66.

Stock Futures Mixed as Investors Look Ahead to Fed Rate Decision.

On Monday, U.S. stock futures predominantly rose as investors anticipated the Federal Reserve’s monetary policy decision later in the week, amidst changing perceptions regarding interest rates due to recent elevated inflation figures.

Indexes: Dow up 0.28%, S&P 500- down 0.29%, Nasdaq down 0.30%.

Corporate News:

Netflix, Inc. (NFLX) is down 1.16% at 605.88, Tesla, Inc. (TSLA) is up 0.66% at 163.57, and Apple Inc. (AAPL) is down 0.22% at 172.62. Goldman Sachs Group Inc (GS) is down 0.36% at 387.21, and Morgan Stanley (MS) is down 0.81% at 88.38.

Key Economic Events & Data Release Today:

(EUR) CPI (YoY) (Feb) Forecast 2.6%, Previous 2.8% at 06:00.

(JPY) BoJ Monetary Policy Statement 22:30.

(AUD) RBA Interest Rate Decision (Mar) Forecast 4.35%, Previous 4.35% at 23:30.

(AUD) RBA Rate Statement 23:30.