. Daily Index Analysis - Tech giant Nvidia's fall rocks markets.

Daily Index Analysis – Tech giant Nvidia’s fall rocks markets.

Daily Index Analysis – Tech giant Nvidia’s fall rocks markets.

21 Feb 2024

Introduction:

Global markets present a varied landscape, with Asian stocks reflecting mixed performance amid Wall Street’s tech-driven decline, particularly focusing on Nvidia. In Europe, markets struggle to find positive momentum. Meanwhile, U.S. stocks experience a downturn as hopes for an early interest rate cut fade, influenced by discouraging inflation data from the previous week.

Market In Focus for today – Nasdaq 100

On Tuesday, significant losses were observed in the Nasdaq index, primarily attributed to a sharp decline in the stock of Nvidia.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17669.62 | Negative Crossover | Bearish
  • MA 20: 17754.92 | Negative Crossover | Bearish
  • MA 50: 17734.35 | Negative Crossover | Bearish

Simple:

  • MA 5: 17681.28 | Negative Crossover | Bearish
  • MA 20: 17755.12| Negative Crossover | Bearish
  • MA 50: 17734.43 | Positive Crossover | Bullish

RSI (Relative Strength Index): 34.12| Sell Zone| Sell

Stochastic Oscillator: 0.00| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 17674.62 | R2: 18107.13
  • S1: 17229.39| S2: 16796.88

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Limit Sell: 17725.50 | Take Profit: 17153.06| Stop Loss: 18068.97.

S&P 500:

On Tuesday, the S&P 500 concluded with losses, primarily influenced by the decline in Nvidia.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5001.84 | Negative Crossover | Bearish
  • MA 20: 5008.80 | Negative Crossover | Bearish
  • MA 50: 4990.90 | Negative Crossover | Bearish

Simple:

  • MA 5: 5006.35 | Negative Crossover | Bearish
  • MA 20: 5008.51| Negative Crossover | Bearish
  • MA 50: 4990.30| Negative Crossover | Bearish

RSI (Relative Strength Index): 39.64| Bearish Zone| Negative

Stochastic Oscillator: 0.00| Negative Zone | Negative

Resistance And Support Levels:

  • R1: 5016.96 | R2: 5067.84
  • S1: 4978.80| S2: 4871.59

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell : 4957.00 | Take Profit: 4971.59| Stop Loss: 5013.32.

FTSE 100:

On Wednesday, the FTSE 100 in the UK declined, with underwhelming earnings reports from HSBC Holdings and Glencore putting pressure on banking and mining shares.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7702.68 | Positive Crossover | Bullish
  • MA 20: 7651.09 | Negative Crossover | Bearish
  • MA 50: 7650.37 | Negative Crossover | Bearish

Simple:

  • MA 5: 7723.29 | Positive Crossover | Bullish
  • MA 20: 7651.21| Positive Crossover | Bearish
  • MA 50: 7650.42| Positive Crossover | Bearish

RSI (Relative Strength Index): 50.09| Buy Zone| Bullish

Stochastic Oscillator: 53.53| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 7689.9 | R2: 7790.2
  • S1: 7630.7| S2: 7535.4

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion: Stop Buy: 7711.2 | Take Profit: 7790.2| Stop Loss: 7663.6.

DAX 40:

On Tuesday, the DAX experienced a 0.14% drop, concluding the session at 17,068. On Wednesday, investors should focus on Eurozone consumer confidence figures and commentary from the ECB.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17124.24 | Positive Crossover | Bullish
  • MA 20: 17078.07 | Positive Crossover | Bullish
  • MA 50: 17052.86| Positive Crossover | Bullish

Simple:

  • MA 5: 17132.02| Positive Crossover | Bullish
  • MA 20: 17078.07| Positive Crossover | Bullish
  • MA 50: 17052.86| Positive Crossover | Bullish

RSI (Relative Strength Index): 61.39| Buy Zone| Bullish

Stochastic Oscillator: 48.01|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 17200.9 | R2: 17413.3
  • S1: 16926.5| S2: 16652.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 16873.4 | Take Profit: 17200.9| Stop Loss: 16661.0.

Elsewhere in the Indices Market:

Asian stock markets display a mixed performance following the decline in Wall Street driven by weakness in Tech stocks, with attention centered on Nvidia.

The Shanghai composite is up at 0.97%. Overall, the Singapore MSCI down 1.38% to 286.50. Over in Hong Kong, the Hang Seng Index up 1.57% to 16,503.10. In Japan, the Nikkei 225 down 0.26% to 38,262.16, while the Topix index was down 0.19% to 2627.30. South Korea’s Kospi down 0.17% to 2,653.31. Australia S&P/ASX 200 up 0.66% to, 7,608.40.

European markets exhibit a mixed performance and face challenges in gaining positive momentum.

The DAX futures contract in Germany traded 0.16 higher, CAC 40 futures in France up 0.15% to 7,807.08 and the UK 100 futures contract in the U.K. down 0.73% to 7,662.59%.

US stocks fall as early rate cut hopes fade.

On Tuesday, U.S. stock indices declined due to diminishing expectations for an early interest rate cut. The previous week’s inflation data dashed investors’ optimism about the possibility of the U.S. Federal Reserve initiating interest rate cuts in March.

Indexes: Dow down 0.19%, S&P 500- down 0.56%, Nasdaq down 1.06%.

Corporate News:

Netflix, Inc. (NFLX) down 1.51% at 575.13, Tesla, Inc (TSLA) down 3.10% at 193.76, Apple Inc. (AAPL) down 0.41% at 181.56. Goldman Sachs Group Inc (GS) up 0.021% at 384.52, Morgan Stanley (MS) down 1.33% at 85.35.

Key Economic Events & Data Release Today:

(EUR) European Central Banking Non-monetary Policy Meeting at 03:00.

(CAD) New Housing Price Index (MoM) (Jan) Forecast 0.1%, Previous 0.0% at 08:30.

(USD) FOMC Meeting Minutes at 14:00.