. Daily Index Analysis - Tech rules Nasdaq, S&P records, FTSE challenges, DAX shines.

Daily Index Analysis – Tech rules Nasdaq, S&P records, FTSE challenges, DAX shines.

Daily Index Analysis – Tech rules Nasdaq, S&P records, FTSE challenges, DAX shines.

19 Jan 2024

Introduction:

In the global indices market, Asian markets show gains, tracking a Wall Street rally. European stocks rise, led by chipmakers, and positive earnings contribute to the upbeat sentiment. Meanwhile, Wall Street ends positively, supported by strong economic data, but rising Treasury yields may affect expectations of a gradual economic slowdown. Market movements hinge on data and central bank decisions, shaping the landscape for investors worldwide.

Market In Focus for today – Nasdaq 100

The Nasdaq 100 achieves a new record high in a rebound fuelled by the technology sector.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17096.98 | Positive Crossover | Bullish
  • MA 20: 16961.84 | Positive Crossover | Bullish
  • MA 50: 16840.81 | Positive Crossover | Bullish

Simple:

  • MA 5: 17066.07 | Positive Crossover | Bullish
  • MA 20: 16961.22| Positive Crossover | Bullish
  • MA 50: 16840.34 | Positive Crossover | Bullish

RSI (Relative Strength Index): 69.35| Buy Zone| Bullish

Stochastic Oscillator: 100| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 17224.28 | R2:17587.17
  • S1: 16989.46| S2: 16434.45

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy : 17021.48 | Take Profit: 17395.05| Stop Loss: 16765.33.

S&P 500:

The S&P 500 concludes near its all-time high, propelled by optimism in artificial intelligence that boosts chipmakers.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4807.46 | Positive Crossover | Bullish
  • MA 20: 4800.34 | Positive Crossover | Bullish
  • MA 50: 4798.05 | Positive Crossover | Bullish

Simple:

  • MA 5: 4800.12 | Positive Crossover | Bullish
  • MA 20: 4800.69| Positive Crossover | Bullish
  • MA 50: 4798.06| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.22| Bullish Zone| Positive

Stochastic Oscillator: 94.98|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4843.25 | R2: 4915.12
  • S1: 4776.33| S2: 4719.03

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 4796.16 | Take Profit: 4887.86| Stop Loss: 4749.07.

FTSE 100:

The FTSE 100 Index in the UK witnessed a comparable upward trajectory, although facing challenges. It encountered difficulties in recovering from a three-day slump, influenced by expectations of postponed interest rate cuts and a hawkish stance from central bank policymakers.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7488.98 | Positive Crossover | Bullish
  • MA 20: 7561.36 | Negative Crossover | Bearish
  • MA 50: 7655.05 | Negative Crossover | Bearish

Simple:

  • MA 5: 7478.06 | Positive Crossover | Bullish
  • MA 20: 7561.73| Negative Crossover | Bearish
  • MA 50: 7655.02| Negative Crossover | Bearish

RSI (Relative Strength Index): 37.17| Selling Zone| Sell

Stochastic Oscillator: 55.56|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7514.0 | R2: 7604.2
  • S1: 7438.6| S2: 7359.5

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Limit Sell : 7515.9 | Take Profit: 7438.6| Stop Loss: 7571.0.

DAX 40:

Germany’s DAX Index demonstrated strength, recording an increase amid diverse market factors.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16674.44 | Positive Crossover | Bullish
  • MA 20: 16707.02 | Positive Crossover | Bullish
  • MA 50: 16775.08 | Negative Crossover | Bearish

Simple:

  • MA 5: 16659.04 | Positive Crossover | Bullish
  • MA 20: 16707.15| Positive Crossover | Bullish
  • MA 50: 16775.54| Negative Crossover | Bearish

RSI (Relative Strength Index): 50.12| Positive Zone| Bullish

Stochastic Oscillator: 75.58|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 16893.3 | R2: 17199.0
  • S1: 16631.3| S2: 16273.1

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion:  Limit Buy : 16657.5 | Take Profit: 16998.1| Stop Loss: 16474.0.

Elsewhere in the Indices Market:

Asian Markets Trade Higher Tracking Overnight Rally on Wall Street.

The Shanghai composite is down at 0.47%. Overall, the Singapore MSCI up 0.91% to 276.10. Over in Hong Kong, the Hang Seng Index down 0.54% to 15,308.69. In Japan, the Nikkei 225 up 1.40% to 35,963.27, while the Topix index was up 0.72% to 2,510.03. South Korea’s Kospi up 1.34% to 2,472.74. Australia S&P/ASX 200 up 1.02% to, 7,421.20.

European stocks make gains with chipmakers leading the rally, and positive earnings serve as a highlight.

The DAX futures contract in Germany traded 0.34 higher, CAC 40 futures in France up 0.30% to 7,423.56 and the UK 100 futures contract in the U.K. up 0.65% to 7,507.22.

Wall Street finishes on a positive note, with rising Treasury yields, supported by robust data, reinforcing expectations of a gentle economic slowdown.

On Thursday, U.S. stocks surged, fueled by robust labor market data that showcased the resilience of the U.S. economy. However, the positive data might lead the Federal Reserve to delay a potential reduction in its key policy rate.

Indexes: Dow up 0.54%, S&P 500- up 0.88%, Nasdaq up 1.35%.

Corporate News:

Netflix, Inc. (NFLX) up 1.04% at 485.31, Tesla, Inc (TSLA) down 1.70% at 211.88, Apple Inc. (AAPL) up 3.26% at 188.63. Goldman Sachs Group Inc (GS) down 0.072% at 376.91, Morgan Stanley (MS) down 0.60% at 83.90.

Key Economic Events & Data Release Today:

(JPY) National Core CPI (YoY) (Dec) Actual 2.3%, Forecast 2.3%, Previous 2.5% at 05:00.

(GBP) Core Retail Sales (MoM) (Dec) Actual –3.2%, Forecast –0.5%, Previous 1.3% at 12:30.

(ECB) ECB President Lagarde Speaks at 15:30.

(CAD) Core Retail Sales (MoM) (Nov) Forecast –0.1%, Previous 0.6% at 19:00.

(USD) Existing Home Sales (Dec) Forecast 3.82M, Previous 3.82M at 20:30.

(EUR) ECB President Lagarde Speaks at 20:45.