. Daily Index Analysis - Nasdaq Plummets Amid Rising Yields, Igniting Chipmaker Stock Chaos.

Daily Index Analysis – Nasdaq Plummets Amid Rising Yields, Igniting Chipmaker Stock Chaos.

Daily Index Analysis – Nasdaq Plummets Amid Rising Yields, Igniting Chipmaker Stock Chaos.

18 Oct 2023

Introduction:

Asian markets showed mixed results following strong Chinese data, with the Shanghai composite down 0.80%. In Europe, shares dipped due to downbeat earnings reports, with German DAX, French CAC 40, and UK 100 futures in the red. On Wall Street, higher yields and chipmaker woes led to a slip, attributed in part to the Biden administration’s AI processor shipping restrictions to China.

Market In Focus for today – Nasdaq 100

Nasdaq ends down on higher yields, chipmaker shares decline.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 15200.23 | Negative Crossover | Bearish
  • MA 20: 15198.53 | Negative Crossover | Bearish
  • MA 50: 15136.83 | Positive Crossover | Bullish

Simple:

  • MA 5: 15208.12 | Negative Crossover | Bearish
  • MA 20: 15259.09| Negative Crossover | Bearish
  • MA 50: 15040.46 | Positive Crossover | Bullish

RSI (Relative Strength Index): 49.14 | Bullish Zone | Buy

Stochastic Oscillator: 21.44 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 15419.42 | R2: 15722.04
  • S1: 1513.71| S2: 14688.70

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 15042.99 | Take Profit: 14688.70 | Stop Loss: 15301.33.

Elsewhere in the Indices Market

Asian market mixed after stronger than expected Chinese data.

The Shanghai composite is down at 0.80%. Overall, the Singapore MSCI down 1.46% to 280.55. Over in Hong Kong, the Hang Seng Index down 0.23% to 17,732.52. In Japan, the Nikkei 225 up 0.01% to 32,042.25, while the Topix index was up 0.14% to 2,295.34. South Korea’s Kospi up 0.10% to 2,462.60. Australia S&P/ASX 200 up 0.30% to, 7,077.60.

European shares slip amid downbeat earnings report.

The DAX futures contract in Germany traded 0.65 lower, CAC 40 futures in France down 0.63% to 6,985.76 and the UK 100 futures contract in the U.K. down 0.60% to 7,628.96.

Wall St slips on higher yields, chipmaker shares decline.

Tuesday saw a decrease in the Nasdaq and a near flat Dow and S&P 500 due to an increase in Treasury yields and a decline in chipmaker shares following the announcement by the Biden administration that it would stop shipping cutting-edge artificial intelligence processors to China.

Indexes: Dow up 0.4%, S&P 500- down 0.1%, Nasdaq down 0.3%.

Corporate News:

Netflix Inc (NFLX) down 1.41% at 355.72, Tesla Inc. (TSLA) up 0.39% at 254.92, Walmart Inc. (WMT) up 0.13% at 161.42. Goldman Sachs Group Inc (GS) down 1.60% at 309.36, Morgan Stanley (MS) up 2.03% at 80.33.

Key Economic Events & Data Release Today:

(CNY) GDP (YoY) (Q3) Actual 4.9%, Forecast 4.4%, Previous 6.3% at 07:30.

(CNY) Industrial Production (YoY) (Sep) Actual 4.5%, Forecast 4.3%, Previous 4.5% at 07:30.

(GBP) CPI (YoY) (Sep) Actual 6.7%, Forecast 6.6%, Previous 6.7% at 11:30.

(EUR) ECB President Lagarde Speaks at 14:30.

(EUR) CPI (YoY) (Sep) Forecast 4.3%, Previous 5.2% at 14:30.

(USD) Building Permits (Sep) Forecast 1.445M, Previous 1.541M at 18:00.