Trade Setup for Friday; Stock Market Prediction Today (3 November 2023)

 

Trade Setup for Friday

 

Trade setup for Friday, 3 November 2023- Good morning, and welcome to the morning reports, the top things to know ahead of market opening and trade setup today.

 

Asian Stock Markets

 

Asian stock market indexes are trading higher on Friday, as investor’s focus now shifted from the Fed interest rate to economic data. Services purchasing managers’ index (PMI) data from major economies including China, and Hong Kong will released later in the day. Japan’s Nikkei index is not trading today due to a public holiday.

Australia’s S&P ASX 200 index is trading higher by 1.17%, while South Korea’s Kospi is up 1% after closing strong in the previous session. The Shanghai Index is trading higher by 0.41 percent, while Hang Seng is up 1.20%. Elsewhere, the Straits Times and Taiwan are also trading in the green territory at 7.10 a.m. IST.

 

U.S. Stock Market Indexes Updates

 

The US stock market indexes rallied on Thursday, as the Treasury yield fell and on optimism that the Federal Reserve is done raising interest rates. The 10-year Treasury yield closed at 4.663%, fell for the second consecutive day, it was settled at 4.734% on Wednesday. Investors are now closely looking out for the monthly job reports which are due later in the day.

On the economic front, there was an unexpected decline in the cost of labor as showed by the  Labor Department, offering a bit of relief on the inflation front. Additionally, the weekly jobless claims data came a bit higher than expected, suggesting an economic slowdown aligns with the Fed’s intention.

Palantir Technologies gained more than 20% due to strong Q3 earnings and full-year guidance. Roku Inc and Paypal Holdings Inc also rose more than 30% and 6% respectively after reporting better-than-expected third quarterly results. Meanwhile, Moderna declined more than 6% after the pharma major reported a third-quarter loss.

The key US stock market indexes, the Dow Jones Industrial Average and S&P 500 index gained 1.70% and 1.89% respectively, while the Nasdaq was up by 1.78% at the close on Thursday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed higher on Thursday, as investors reacted positively after the US Fed held interest rates steady. The market sentiments were further boosted after the Bank of England followed the same path and announced to keep the interest rate unchanged. The decision was widely expected after the ECB and Fed kept interest rates the same.

Investors also remained focused on the corporate earnings, the pharmaceutical company Novo Nordisk reported upbeat quarterly results as the company’s sales of weight loss drugs boosted, and shares gained more than 3%.

The shares of energy major Shell rose more than 4% after the profit increases in the third quarterly results and the company announced a buyback.

The pan-European Stoxx 600 index ended 1.6% higher with all sectors closed in the positive territory. Auto stocks gained the most followed by tech stocks. The key stock market indexes, CAC and DAX gained 1.81% and 1.45% respectively while the UK’s FTSE was up by 1.40% on Thursday.

 

Indian Stock Market Indexes

 

Indian stock market indexes snapped a two-day losing streak and closed on a strong note on Thursday amid positive global cues. The market sentiments were positive as the US Fed kept the interest rate unchanged and hinted that the central bank has done its aggressive monetary policy tightening cycle. Investors across the globe cheered the dovish commentary made by Fed Chair Powell on Wednesday. 

The market breadth was quite strong with advance decline indicating a ratio of 3:1 at the close. FIIs were the net sellers, they offloaded shares worth Rs 1261.19 crore in the Indian equity cash segments, while DIIs were the buyers and they bought shares for Rs 1380.15

 

Q2 Earnings

 

Titan Company, InterGlobe Aviation, Zomato, Aditya Birla Capital, Aegis Logistics, Bharat Dynamics, Crompton Greaves Consumer Electricals, Escorts Kubota, MRF, Shipping Corporation of India, Thermax, TTK Healthcare, UCO Bank, Godfrey Phillips India, IDFC, Indigo Paints, JSW Infrastructure, and Whirlpool of India will announce their quarterly results on Friday.

 

Stock Market Prediction Today

 

Gift Nifty is trading slightly lower by 12 points or 0.06 % and at 19347 levels. The indications from Wall Street and European markets are strong, Asian markets are also trading positively. Indian stock market indexes are likely to open a gap-up for the second consecutive session. Traders should remain cautious, as Services PMI data numbers are expected in the morning.

 

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Editor’s Desk