Trade Setup for Thursday: Stock Market Today (1 February 2024)

 

Trade Setup for Thursday, 1 Feb 2024: Good morning, and welcome to the morning reports, the top things to know ahead of market opening and Trade setup today.

 

Asian Stock Market Indexes

 

Asian stock market indexes are mostly trading lower on Thursday as the hopes of early rate cuts in the US faded away after Fed Chair Jerome Powell kept the rates steady and hinted unlikely to rate cut in March. Investors are now awaiting the business activity data for January from across the region.

Japan’s Nikkei is trading lower by 0.76%, while Australia’s S&P ASX 200 index is down by 1.15% putting an end to an eight-day winning streak. South Korea’s Kospi index is trading higher by 0.67%. Shanghai index is down by 0.83%, while Hang Seng is trading slightly higher by 0.20%. The Straits Times is trading lower while Taiwan is in the green territory at 7.20 am IST.

 

U.S. Stock Market Indexes Updates

 

US stock markets closed sharply lower on Wednesday, as Federal Reserve Chairman Jerome Powell kept the key rate steady and hints that rate cuts are not coming soon. Powell’s remarks dashed hopes for an early rate cut and that added fuel to the tech-led selloff. Treasury yields remain in the red, the 10-year Treasury yields slipped to 3.919% from the previous close of 4.034%.

According to the CME FedWatch tool, the chance of easing the interest rate in the March meeting has reduced from 62% to 53% after the Fed’s meeting. On the economic front, ADP data showed slow growth in January. The private payrolls added 107,000 employees in January, while the economist expected 150,000.

Shares of Alphabet fell sharply by over 7% as disappointing ad revenue offset the better-than-expected quarterly earnings. Microsoft and AMD also fell more than 2% after the announcement of their quarterly earnings.

The key US stock market indexes, the Dow Jones Industrial Average (DJIA) and S&P 500 index declined by 0.82% and 1.61% respectively, while the tech-heavy Nasdaq composite index was down 2.23% on Wednesday.

 

European Stock Market Indexes Updates

 

The major stock market indexes in Europe closed lower on Wednesday as investors digested the latest economic data released in the region and remained cautious ahead of the US Fed monetary policy updates. The pan-European Stoxx index gained 0.01% on Wednesday, with auto stocks gaining while retail stocks declined.

On the economic front, the latest data showed that the retail sales in Germany unexpectedly declined again in December, while the unemployment rate remained steady in January. The Inflation in France eased faster than expected in January. Meanwhile, Nationwide’s House Price Index showed that the UK’s house price growth has slightly improved in January.

European stock market indexes CAC and DAX closed lower by 0.27% and 0.41%, respectively, while the UK’s FTSE was down by 0.47%.

 

Indian stock markets

 

Indian stock market indexes closed higher on Wednesday amid volatility. The equity benchmarks opened lower on Wednesday and recovered immediately, extending their early gains as investors bet on the beaten-down stocks. The market sentiments were optimistic as the IMF raised India’s GDP growth forecast.

The market breadth was strong with the advance decline indicating a ratio of 3:1 at the close. Both FII and DII were the net buyers in the equity cash segments. FIIs bought shares worth Rs 1660.72 crore while DIIs purchased shares worth Rs 2542.93 crore.

 

Quarterly Earnings for Today

 

Titan Company, Adani Enterprises, Adani Ports and Special Economic Zone, Bata India, City Union Bank, Deepak Fertilisers, AAVAS Financiers, Abbott India, Aditya Birla Capital, eClerx Services, Indian Hotels Company, India Cements and Dr Lal PathLabs will announce their quarterly earnings on February 1.

 

Stock Market Today

 

The global cues are negative today. Gift Nifty is trading only 3 points higher at the 21798 level. The indication from the Gift Nifty is slightly positive today. Indian stock market indexes are likely to open on a cautious note and will remain volatile throughout the day. The Interim Budget 2024 is scheduled today along with the manufacturing PMI data.

 

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News you should read before the trade setup for today, 1 Feb 2024

 

According to the provisional data released by the government, the Goods and Services Tax (GST) collections rose to Rs 1.72 lakh crore in January. The GST has collected 1.65 Lakh crore in December 2023.

Separate data from the Controller General of Accounts showed that the central government’s fiscal deficit widened to Rs 9.82 lakh crore in the nine months from April-December from Rs 9.07 lakh crore in April-November.

 

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You may follow our Nifty and Bank Nifty live updates, support, and resistance levels at 11.15 a.m. Also, read What to Expected in the Markets this Week 

 

Happy Investing!!

Editor’s Desk