Trade Setup for Wednesday: Stock Market Today (31 Jan 2024)
Trade Setup for Wednesday, 31 Jan 2024: 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 markets are mostly trading lower on Wednesday, as investors are cautious ahead of the US Fed’s monetary policy and key economic data from the region. Japan’s Nikkei is trading lower by 0.58% as Japan’s industrial production rebounded in December but the retail sales fell. Australia’s S&P ASX 200 pared early losses and is trading higher by 0.30%, as the country’s fourth-quarter inflation rate came in lower than expected.
South Korea’s Kospi index is down by 0.26%, investors are looking for industrial production and retail sales data later in the day. Shanghai and Hang are trading lower by 0.71% and 0.72% respectively. Meanwhile, Strati Times is trading slightly higher by 0.18% while Taiwan is down by 0.53% at 7.25 am IST.
U.S. Stock Market Indexes Updates
US stock market indexes closed mixed on Tuesday. The Dow Jones closed at a record high for the second consecutive day, up by 0.35%, while the S&P 500 and Nasdaq ended lower by 0.06% and 0.76%, as investors assessed quarterly earnings from big tech and economic data.
The latest Job Openings and Labor Turnover Survey (JOLTS) data showed that job openings in December increased to 9.03M, higher than economist’s expectation of 8.75M. Separately, another report showed that consumer confidence jumped to a 2-year high. Both reports indicate economic strength just ahead of the Fed starting its two-day meeting.
The correction in tech stocks dragged down the S&P and Nasdaq on Tuesday. The tech giant Microsoft, Alphabet, and AMD fell between 0.28% to 3% after reporting their quarterly earnings. Microsoft and AMD fell due to light guidance while Alphabet was down due to disappointing Google Ad revenue. Meanwhile, General Motors’ share rose more than 7% after the auto giant provided an optimistic outlook for 2024.
European Stock Market Indexes Updates
European stock market indexes closed higher on Tuesday and hit a fresh two-year high as investors assessed the first print of fourth-quarter gross domestic product data for the eurozone. The sentiments were positive, as the European Union (EU) managed to avoid a technical recession after the reading showed zero GDP in the fourth quarter as against a 0.1% contraction in the third quarter.
However, the upside remained capped as investors were cautious ahead of the US Fed’s meeting that started on Tuesday. The pan-European Stoxx 600 index closed higher by 0.16% with Banking stocks gaining the most while mining stock declined.
The key European stock market indexes, CAC and DAX closed higher by 0.48% and 0.18% respectively, while the UK’s FTSE was up by 0.44% on Tuesday.
Indian stock markets
Indian stock markets opened higher on Tuesday but could not sustain at a higher level due to profit booking in heavyweight stocks including Bajaj Finance, Reliance, ITC, and NTPC. The domestic markets after initial volatility fell sharply in the afternoon session. Investors remain cautious ahead of the FOMC meeting and Interim Budget scheduled later this week.
The market breadth was neutral with advance decline indicating an equal ratio at the close. FIIs were the net sellers in the Indian equity cash market segments, they offloaded shares worth Rs 1970.52 crore, while DIIs were the net buyers, they bought shares worth Rs 1002.70 crore on Tuesday.
Quarterly Earnings for Today
Maruti Suzuki India, Sun Pharmaceutical Industries, Shree Cement, Ambuja Cements, Bank of Baroda, Dabur India, Amara Raja Energy & Mobility, Adani Wilmar, Balaji Amines, Dixon Technologies, Fino Payments Bank, Jubilant FoodWorks, Jyothy Labs, Kalyan Jewellers India, Mankind Pharma, GMR Airports Infrastructure, Godrej Consumer Products, IRB Infrastructure Developers, Jindal Steel & Power, PVR Inox, and Suzlon Energy will announce their third-quarter earnings on January 31.
Stock Market Today
The cues from global markets are mostly negative today. Gift Nifty is trading 51 points down at the 21619 level. The Indian stock markets are likely to open on a flat note and will trade volatile.
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News you should read before the trade setup for today, 31 Jan 2024
On Tuesday, the International Monetary Fund (IMF) raised India’s GDP growth forecast for 2024-25 by 20 basis points to 6.5% while updating the World Economic Outlook (WEO) amid optimistic domestic spending and better global growth prospects.
For the financial year 2024, the IMF raised the growth estimate for India by 40 basis points to 6.7% compared to its October report. The growth estimate is lower than the 7.3% growth projected by the National Statistical Office earlier this month.
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Editor’s Desk
