. Daily Index Analysis - Nasdaq revival, S&P drop, FTSE boost, DAX impacted.

Daily Index Analysis – Nasdaq revival, S&P drop, FTSE boost, DAX impacted.

Daily Index Analysis – Nasdaq revival, S&P drop, FTSE boost, DAX impacted.

01 Feb 2024

Introduction:

Amidst the global indices landscape, Asian stocks grapple with uncertainty as the Federal Reserve minimizes the possibility of early rate cuts. Shanghai Composite and Singapore MSCI record declines, while Hong Kong’s Hang Seng Index sees an uptick. European stocks dropped ahead of the Fed decision, with Germany’s DAX and France’s CAC 40 facing losses. Wall Street concludes January on a downturn after the Fed maintains interest rates, dispelling hopes for a March rate cut, prompting a decline in U.S. stocks.

Market In Focus for today – Nasdaq 100

The NASDAQ 100 experienced a slight decline in Wednesday’s trading session but reversed course, displaying signs of revival.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17367.19 | Negative Crossover | Bearish
  • MA 20: 17534.54 | Negative Crossover | Bearish
  • MA 50: 17289.55 | Positive Crossover | Bullish

Simple:

  • MA 5: 17351.12 | Negative Crossover | Bearish
  • MA 20: 17534.54| Negative Crossover | Bearish
  • MA 50: 17289.55 | Positive Crossover | Bullish

RSI (Relative Strength Index): 45.04| Buy Zone| Bullish

Stochastic Oscillator: 8.88| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 17506.01 | R2: 17798.84
  • S1: 17163.18| S2: 16784.64

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 17191.75 | Take Profit: 17506.01| Stop Loss: 16998.91.

S&P 500:

S&P 500 records its most significant decline in five months.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4896.55 | Negative Crossover | Bearish
  • MA 20: 4915.43 | Negative Crossover | Bearish
  • MA 50: 4860.53 | Positive Crossover | Bullish

Simple:

  • MA 5: 4898.89 | Negative Crossover | Bearish
  • MA 20: 4915.44| Negative Crossover | Bearish
  • MA 50: 4860.68| Positive Crossover | Bullish

RSI (Relative Strength Index): 47.83| Bullish Zone| Positive

Stochastic Oscillator: 8.63| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 4900.09 | R2: 4958.30
  • S1: 4835.75| S2: 4719.33

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4828.09 | Take Profit: 4900.09| Stop Loss: 4780.60.

FTSE 100:

Positive earnings reports from a range of influential companies boosted the UK’s FTSE 100 on Thursday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7662.46 | Positive Crossover | Bullish
  • MA 20: 7625.20 | Positive Crossover | Bullish
  • MA 50: 7586.11 | Positive Crossover | Bullish

Simple:

  • MA 5: 7666.32 | Positive Crossover | Bullish
  • MA 20: 7625.27| Positive Crossover | Bullish
  • MA 50: 7586.14| Positive Crossover | Bullish

RSI (Relative Strength Index): 60.38| Buying Zone| Buy

Stochastic Oscillator: 17.76|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 7685.1 | R2: 7791.8
  • S1: 7606.0| S2: 7512.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7699.8 | Take Profit: 7791.8| Stop Loss: 7644.6.

DAX 40:

A drop in January inflation across crucial German states suggests a possible decrease in both national and Eurozone inflation. This shift has the potential to impact sentiment in European markets and influence monetary policy in the region.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16985.79 | Negative Crossover | Bearish
  • MA 20: 17005.85 | Negative Crossover | Bearish
  • MA 50: 16840.08 | Positive Crossover | Bullish

Simple:

  • MA 5: 16991.02| Negative Crossover | Bearish
  • MA 20: 17005.09| Negative Crossover | Bearish
  • MA 50: 16840.82| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.95| Positive Zone| Bullish

Stochastic Oscillator: 15.69|SellZone | Negative

Resistance And Support Levels:

  • R1: 16989.09 | R2: 17199.00
  • S1: 16854.00| S2: 16712.08

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 16921.9 | Take Profit: 17120.6| Stop Loss: 16817.4

Elsewhere in the Indices Market:

Asian stocks face uncertainty as the Fed downplays early rate cuts.

The Shanghai composite is down at 0.64%. Overall, the Singapore MSCI is down 0.53% to 275.93. Over in Hong Kong, the Hang Seng Index is up 0.52% to 15,566.21. In Japan, the Nikkei 225 was down 0.76% to 36,011.46, while the Topix index was down 0.67% to 2534.04. South Korea’s Kospi up 1.82% to 2,542.46. Australia S&P/ASX 200 is down 1.20% to, 7,588.20.

European stock drop ahead of Fed decision.

The DAX futures contract in Germany traded 0.20 lower, CAC 40 futures in France down 0.78% to 7,597.36 and the UK 100 futures contract in the U.K. up 0.46% to 7,665.84.

Wall Street concludes with losses after Fed holds rates steady, rules out March rate cut.

U.S. stocks experienced a decline on the final trading day of January as the Federal Reserve opted to keep interest rates unchanged, dashing expectations for an early rate cut, particularly in March.

Indexes: Dow down 0.82%, S&P 500- down 1.61%, Nasdaq down 2.23%.

Corporate News:

Netflix, Inc. (NFLX) is up 0.22% at 564.11, Tesla, Inc. (TSLA) is down 2.24% at 187.29, and Apple Inc. (AAPL) is down 1.94% at 184.40. Goldman Sachs Group Inc (GS) is down 0.74% at 384.01, and Morgan Stanley (MS) is down 0.43% at 87.24.

Key Economic Events & Data Release Today:

(EUR) ECB President Lagarde Speaks at 03:00.

(EUR) German Manufacturing PMI (Jan) Forecast 45.4, Previous 43.3 at 03:55.

(EUR) CPI (YoY) (Jan) Forecast 2.7%, Previous 2.9% at 05:00.

(GBP) BoE Interest Rate Decision (Jan) Forecast 5.25%, Previous 5.25% at 07:00.

(GBP) BoE Gov Bailey Speaks at 07:30.

(USD) Initial Jobless Claims Forecast 213K, Previous 214K at 08:30.

(USD) ISM Manufacturing PMI (Jan) Forecast 47.2, Previous 47.4 at 10:00.