. Daily Index Analysis - Nasdaq, S&P surge; FTSE challenges; Europe declines.

Daily Index Analysis – Nasdaq, S&P surge; FTSE challenges; Europe declines.

Daily Index Analysis – Nasdaq, S&P surge; FTSE challenges; Europe declines.

09 Jan 2024

Introduction:

In the global indices landscape, Asian markets surged with technology stocks leading the way, notably in Japan and Australia. However, European markets faced declines, influenced by a tech drag, while investors awaited economic data. In the U.S., stock futures modestly rose, building on the Nasdaq’s recent rally, setting the tone for Tuesday.

Market In Focus for today – Nasdaq 100

On Monday, the Nasdaq experienced its initial 1% or more gain in 2024, propelled by a decline in Treasury yields that contributed to the upswing in mega cap stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16669.31 | Positive Crossover | Bullish
  • MA 20: 16643.65 | Positive Crossover | Bullish
  • MA 50: 16843.75 | Positive Crossover | Bullish

Simple:

  • MA 5: 16641.08 | Positive Crossover | Bullish
  • MA 20: 16643.82| Positive Crossover | Bullish
  • MA 50: 16834.27 | Negative Crossover | Bearish

RSI (Relative Strength Index): 52.92| Buy Zone| Bullish

Stochastic Oscillator: 95.52|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 16746.81 | R2: 17153.52
  • S1: 16392.34| S2: 16016.82

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 16798.95 | Take Profit: 17153.52| Stop Loss: 16600.81.

S&P 500:

On Monday, the key indices posted gains, driven by the strength of technology stocks, as Wall Street aimed for a rebound following a challenging week. The S&P 500 closed at 4,763.54, marking a 1.41% increase.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4773.90 | Positive Crossover | Bullish
  • MA 20: 4764.87 | Positive Crossover | Bullish
  • MA 50: 4786.54 | Negative Crossover | Bearish

Simple:

  • MA 5: 4768.22 | Positive Crossover | Bullish
  • MA 20: 4764.94| Positive Crossover | Bullish
  • MA 50: 4786.55| Negative Crossover | Bearish

RSI (Relative Strength Index): 54.51| Buy Zone| Bullish

Stochastic Oscillator: 93.1|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4746.59 | R2: 4840.77
  • S1: 4692.07| S2: 4602.84

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 4751.55 | Take Profit: 4840.77| Stop Loss: 4701.98.

FTSE 100:

The FTSE 100 in the UK witnessed a more notable decrease, settling at 7,656.64, reflecting a 0.43% decline. The challenges faced by the energy sector primarily contributed to this downward trajectory.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7713.32 | Positive Crossover | Bullish
  • MA 20: 7715.04 | Positive Crossover | Bullish
  • MA 50: 7685.35 | Positive Crossover | Bullish

Simple:

  • MA 5: 7709.84 | Positive Crossover | Bullish
  • MA 20: 7714.95| Positive Crossover | Bullish
  • MA 50: 7685.32| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.34| Buy Zone| Bullish

Stochastic Oscillator: 87.72|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7725.5 | R2: 7793.8
  • S1: 7649.1| S2: 7568.7

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 7655.1 | Take Profit: 7745.6| Stop Loss: 7598.9.

EURO STOXX 50:

Tuesday saw a decline in European stocks, influenced by setbacks in both technology and financial sectors. Investors awaited additional economic data to evaluate the monetary policy direction set by the European Central Bank for the year.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4500.26 | Negative Crossover | Bearish
  • MA 20: 4503.09 | Negative Crossover | Bearish
  • MA 50: 4544.24 | Negative Crossover | Bearish

Simple:

  • MA 5: 4501.04 | Negative Crossover | Bearish
  • MA 20: 4503.85| Negative Crossover | Bearish
  • MA 50: 4544.22| Negative Crossover | Bearish

RSI (Relative Strength Index): 41.02| Neutral Zone| Neutral

Stochastic Oscillator: 80.62|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4541 | R2: 4631
  • S1: 4482| S2: 4380

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell : 4465 | Take Profit: 4380| Stop Loss: 4526.

Elsewhere in the Indices Market:

Asian stocks gained ground on Tuesday following a surge in technology stocks on Wall Street.

The Shanghai composite is up at 0.20%. Overall, the Singapore MSCI up 0.67% to 281.23. Over in Hong Kong, the Hang Seng Index down 0.21% to 16,190.02. In Japan, the Nikkei 225 up 1.16% to 33,763.18, while the Topix index was up 0.82% to 2,413.09. South Korea’s Kospi down 0.26% to 2,561.24. Australia S&P/ASX 200 up 0.93% to, 7,520.50.

European markets decline as technology stocks weigh down, with investors awaiting economic data.

The DAX futures contract in Germany traded 0.24 lower, CAC 40 futures in France down 0.11% to 7,441.85 and the UK 100 futures contract in the U.K. down 0.02% to 7,692.79.

US Stock futures make modest gains following Nasdaq rally.

Tuesday morning saw a marginal increase in U.S. stock futures following a positive start for the major averages earlier in the week.

Indexes: Dow up 0.58%, S&P 500- up 1.4%, Nasdaq up 2.03%.

Corporate News:

Netflix, Inc. (NFLX) up 2.31% at 485.03, Tesla, Inc (TSLA) up 1.25% at 240.45, Apple Inc. (AAPL) up 2.42% at 185.56. Goldman Sachs Group Inc (GS) up 0.63% at 388.86, Morgan Stanley (MS) up 1.18% at 93.24.

Key Economic Events & Data Release Today:

(JPY) Tokyo Core CPI (YoY) (Nov) Actual –2.9%, Forecast –2.3%, Previous –2.5% at 05:00.

(AUD) Retail Sales (MoM) (Nov) Actual 2.0%, Forecast –1.2%, Previous -0.2% at 15:30.

(EUR) German Industrial Production (MoM) (Nov) Actual –0.7%, Forecast 0.2%, Previous –0.4% at 12:30.

(CAD) Building Permits (MoM) (Nov) Forecast –1.7%, Previous 2.3% at 19:00.