. Daily Index Analysis - Markets rebound, Nasdaq leads, caution persists.

Daily Index Analysis – Markets rebound, Nasdaq leads, caution persists.

Daily Index Analysis – Markets rebound, Nasdaq leads, caution persists.

04 Apr 2024

Introduction:

Amidst the volatility, Asian equities rebound after a challenging start to Q2, though caution regarding interest rates persists. Notable movements include Japan’s Nikkei 225 and South Korea’s Kospi on the rise. Meanwhile, European markets anticipate inflation data with gains in DAX and UK 100 futures. US stock futures also climb ahead of key economic indicators and Federal Reserve speeches, reflecting a cautious sentiment regarding interest rate outlooks.

Market In Focus for today – Nasdaq 100

Wednesday witnessed a robust rebound in the index, effectively putting an end to the gradual decline observed over the previous two weeks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18409.04 | Positive Crossover | Bullish
  • MA 20: 18427.48 | Positive Crossover | Bullish
  • MA 50: 18377.52 | Positive Crossover | Bullish

Simple:

  • MA 5: 18401.21 | Positive Crossover | Bullish
  • MA 20: 18448.59| Positive Crossover | Bullish
  • MA 50: 18397.09 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.04| Buying Zone| Buy

Stochastic Oscillator: 55.27| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 18640.59 | R2: 19012.58
  • S1: 18194.19| S2: 17222.99

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 18194.19 | Take Profit: 18690.19| Stop Loss: 17921.29.

S&P 500:

On The S&P 500 edged up marginally on Wednesday following subdued services sector data and remarks from the Federal Reserve.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5276.65 | Negative Crossover | Bearish
  • MA 20: 5280.45 | Positive Crossover | Bullish
  • MA 50: 5254.73 | Positive Crossover | Bullish

Simple:

  • MA 5: 5274.92 | Negative Crossover | Bearish
  • MA 20: 5291.13| Positive Crossover | Bullish
  • MA 50: 5265.04 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.82| Buy Zone| Positive

Stochastic Oscillator: 33.83| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 5332.94 | R2: 5398.60
  • S1: 5221.25| S2: 5110.14

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion:  Limit Buy : 5227.28 | Take Profit: 5332.10| Stop Loss: 5163.54.

FTSE 100:

The index starts the fresh month and quarter near the 8000 mark, following a remarkable bounce back from January’s lows.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7964.04 | Positive Crossover | Bullish
  • MA 20: 7953.14 | Positive Crossover | Bullish
  • MA 50: 7847.68 | Positive Crossover | Bullish

Simple:

  • MA 5: 7958.23 | Positive Crossover | Bullish
  • MA 20: 7938.57| Positive Crossover | Bullish
  • MA 50: 7866.08 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.77| Bullish Zone| Positive

Stochastic Oscillator: 42.56| Neutral Zone | Positive

Resistance And Support Levels:

  • R1: 8037.3 | R2: 8187.1
  • S1: 7906.5| S2: 7781.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 7842.8 | Take Profit: 7968.5| Stop Loss: 7769.1.

Euro Stoxx 50:

On Thursday, European equities rose as investors awaited an inflation report and the minutes from the European Central Bank’s most recent gathering.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5085.84 | Negative Crossover | Bearish
  • MA 20: 5078.42 | Positive Crossover | Bullish
  • MA 50: 5036.50 | Positive Crossover | Bullish

Simple:

  • MA 5: 5088.8 | Negative Crossover | Bearish
  • MA 20: 5084.6 | Positive Crossover | Bullish
  • MA 50: 5041.28 | Positive Crossover | Bullish

RSI (Relative Strength Index): 55.51| Bullish Zone| Positive

Stochastic Oscillator: 35.84| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 5121 | R2: 5204
  • S1: 5026| S2: 4921

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 5037 | Take Profit: 5121| Stop Loss: 4983.

Elsewhere in the Indices Market:

Asian equities rebound after rough start to Q2, rate caution persists.

The Shanghai composite is down at 0.18%. Overall, the Singapore MSCI up 0.38% to 292.62. Over in Hong Kong, the Hang Seng Index down 1.22% to 16,725.10. In Japan, the Nikkei 225 up 0.81% to 39,773.14, while the Topix index was up 0.94% to 2732.00. South Korea’s Kospi up 1.29% to 2,742.00. Australia S&P/ASX 200 up 0.45% to, 7,817.30.

European equities climb in anticipation of upcoming inflation figures.

The DAX futures contract in Germany traded 0.13 higher, CAC 40 futures in France up 0.10% to 8,161.60 and the UK 100 futures contract in the U.K. up 0.42% to 7,970.96.

Futures for US stocks advance as investors await data on initial claims and additional speeches from Federal Reserve officials.

On Thursday, futures for US stock indices increased, yet uncertainty regarding future interest rate trajectories, particularly ahead of crucial labour market statistics, constrained any significant upward movement.

Indexes: Dow up 0.3%, S&P 500- up 0.4%, Nasdaq up 0.5%.

Corporate News:

Netflix, Inc. (NFLX) up 2.58% at 630.08, Tesla, Inc (TSLA) up 1.05% at 168.38, Apple Inc. (AAPL) up 0.48% at 169.65. Goldman Sachs Group Inc (GS) down 0.48% at 414.00, Morgan Stanley (MS) up 0.30% at 93.00.

Key Economic Events & Data Release Today:

(GBP) Composite PMI (Mar) Forecast 52.9, Previous 53.0 at 14:00.

(GBP) Service PMI (Mar) Forecast –53.4, Previous –53.8 at 14:00.

(EUR) ECB Publishes Account of Monetary Policy Meeting at 17:00.

(USD) Initial Jobless Claims Forecast 213K, Previous 210K at 18:00.