. Daily Index Analysis - Nasdaq turbulence, FTSE hits highs, global optimism.

Daily Index Analysis – Nasdaq turbulence, FTSE hits highs, global optimism.

Daily Index Analysis – Nasdaq turbulence, FTSE hits highs, global optimism.

22 Apr 2024

Introduction:

Asian stocks rally as concerns over the Middle East diminish. The Shanghai Composite sees a slight dip while other indices surge, with Singapore’s MSCI up 1.34%, Hong Kong’s Hang Seng Index up 1.77%, Japan’s Nikkei 225 up 1.00%, and South Korea’s Kospi up 1.45%. European markets also start positively, with US futures bouncing back as Middle East tensions ease, paving the way for a busy week ahead.

Market In Focus for today – Nasdaq 100

Amid Israel’s retaliatory actions against Iran overnight, the NASDAQ 100 took a steep dive, dragging stocks down significantly. Heightened volatility ensued, leading the NASDAQ 100 to plummet close to the 17,000 mark.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17436.24 | Negative Crossover | Bearish
  • MA 20: 17655.12 | Negative Crossover | Bearish
  • MA 50: 17961.76 | Negative Crossover | Bearish

Simple:

  • MA 5: 17436.20 | Negative Crossover | Bearish
  • MA 20: 17732.00| Negative Crossover | Bearish
  • MA 50: 18093.34 | Negative Crossover | Bearish

RSI (Relative Strength Index): 31.43| Sell Zone| Bearish

Stochastic Oscillator: 28.88| Selling Zone | Neutral

Resistance And Support Levels:

  • R1: 17517.76 | R2: 17985.21
  • S1: 17050.30| S2: 16643.82

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Sell Limit: 17451.59 | Take Profit: 17112.82| Stop Loss: 17651.52.

S&P 500:

Last week, the S&P 500 witnessed a pronounced downward shift as investors adopted a more cautious stance.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5036.22 | Negative Crossover | Bearish
  • MA 20: 5085.61 | Negative Crossover | Bearish
  • MA 50: 5184.85 | Negative Crossover | Bearish

Simple:

  • MA 5: 5041.82 | Negative Crossover | Bearish
  • MA 20: 5081.29| Negative Crossover | Bearish
  • MA 50: 5149.82 | Negative Crossover | Bearish

RSI (Relative Strength Index): 37.54 | Selling Zone| Negative

Stochastic Oscillator: 79.89| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 5103.79 | R2: 5197.84
  • S1: 4989.31| S2: 4889.13

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Sell Limit : 5081.31 | Take Profit: 4989.31| Stop Loss: 5148.77.

FTSE 100:

The FTSE 100 approaches record high amid rate cut hopes.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7930.29 | Positive Crossover | Bullish
  • MA 20: 7922.76 | Positive Crossover | Bullish
  • MA 50: 7912.46 | Positive Crossover | Bullish

Simple:

  • MA 5: 7906.67 | Positive Crossover | Bullish
  • MA 20: 7917.56| Positive Crossover | Bullish
  • MA 50: 7940.48 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.67| Buy Zone| Bullish

Stochastic Oscillator: 94.04| Positive Zone | Bullish

Resistance And Support Levels:

  • R1: 8057.9 | R2: 8177.0
  • S1: 7912.9| S2: 7788.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 7946.6 | Take Profit: 8057.9| Stop Loss: 7874.1.

Euro Stoxx 50:

European markets kicked off the new trading week positively on Monday, after experiencing heightened uncertainty last week due to ongoing tensions in the Middle East and a reassessment of interest rate projections.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4935.05 | Positive Crossover | Bullish
  • MA 20: 4951.36 | Negative Crossover | Bearish
  • MA 50: 4983.12 | Negative Crossover | Bearish

Simple:

  • MA 5: 4930.08 | Positive Crossover | Bullish
  • MA 20: 4948.04 | Positive Crossover | Bullish
  • MA 50: 5014.50 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.05| Buy Zone| Bullish

Stochastic Oscillator: 81.57| Bullish Zone | Positive

Resistance And Support Levels:

  • R1: 4990 | R2: 5139
  • S1: 4856 | S2: 4753

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion:  Buy Limit : 4972 | Take Profit: 5098 | Stop Loss: 4879.

Elsewhere in the Indices Market:

Asian stocks rebound as Middle East fears ease.

The Shanghai composite is down at 0.67%. Overall, the Singapore MSCI up 1.34% to 294.40. Over in Hong Kong, the Hang Seng Index up 1.77% to 16,511.69. In Japan, the Nikkei 225 up 1.00% to 37,438.61, while the Topix index was up 1.38% to 2662.46. South Korea’s Kospi up 1.45% to 2,629.44. Australia S&P/ASX 200 down 1.08% to, 7,649.20.

European markets kicked off the new trading week with a positive start on Monday.

The DAX futures contract in Germany traded 0.53 higher, CAC 40 futures in France up 0.22% to 8,039.74 and the UK 100 futures contract in the U.K. up 1.45% to 8,009.96.

US Futures bounce back after Friday sell-off, Mideast tensions ease.

On Monday, U.S. stock index futures rose following a decline in the previous session, boosted by reduced tensions in the Middle East, which improved risk sentiment. Investors are anticipating a busy week ahead, marked by significant tech company earnings releases and a crucial inflation report.

Indexes: Dow up 0.42%, S&P 500- up 0.48%, Nasdaq up 0.56%.

Corporate News:

Netflix, Inc. (NFLX) down 9.09% at 555.04, Tesla, Inc (TSLA) down 1.92% at 147.05, Apple Inc. (AAPL) down 1.22% at 165.00. Goldman Sachs Group Inc (GS) up 0.22% at 404.00, Morgan Stanley (MS) up 0.44% at 90.66.

Key Economic Events & Data Release Today:

(CNY) PBoC Loan Prime Rate Forecast –3.45%, Previous –3.45% at 06:45.

(EUR) ECB President Lagarde Speaks at 21:00.