Trade Setup for Wednesday: Stock Market Today (17 Jan 2024)
Trade Setup for Wednesday, 17 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 market indexes are mostly trading in the red on Wednesday, as investors are waiting for the key economic data from China. The latest data showed that the business sentiments of large Japanese companies slid for the first time in four months in January, according to the Reuters Tankan manufacturing survey.
Japan’s Nikkei resumed its rally and is trading higher by 0.84%, while Australia’s S&P ASX 200 index is down 0.20% for the fourth consecutive session. South Korea’s Kospi index is trading lower by 1.58%. Shanghai and Hang Seng index are also trading lower by 0.43% and 2.12% respectively. The Straits Times and Taiwan also trade in the red territory at 7.20 am IST.
U.S. Stock Market Indexes Updates
The US stock markets closed lower on Tuesday as investors digested more earnings from the big banks and a spike in Treasury yields after Fed Governor Christopher Waller tempered the optimism of early rate cuts. The 10-year Treasury yield climbed to 4.067% from Friday’s close of 3.944%, after Waller said that there was no need for the central bank to cut rates quickly, as the economy remains in good shape.
The shares of Goldman Sachs gained 0.71% after the investment bank’s fourth-quarter revenue that beat analysts’ estimation. Morgan Stanley declined 4.16% even after its revenue beat fourth-quarter expectations, as profit suffered a setback due to $535 million in charges.
The major US stock market index, the Dow Jones Industrial Average (DJIA) and S&P 500 index declined 0.62% and 0.37% respectively, while the Nasdaq Composite index was down 0.19% on Tuesday.
European Stock Market Indexes Updates
European stock market indexes closed lower on Tuesday, as investors continued to focus on news and comments from the World Economic Forum in Davos, Switzerland. The market sentiments were hit after the hawkish comments made by ECB members regarding the timing of the interest rate cut.
In the UK, job vacancies were recorded lower in the last quarter of 2023, while wage growth excluding bonuses also slowed again. The pan-European Stoxx 600 index closed lower by 0.30%, with most of the sectors ending in the negative territory.
Utility stocks led the losses down 1.2%. The German Fashion brand Hugo Boss’s fourth-quarter earnings missed analysts’ expectations, despite a sharp rise in sales. The share price declined by around 9%. The European stock market indexes, CAC and DAX closed lower by 0.18% and 0.30% respectively, while the UK’s FTSE was down by 0.48% on Tuesday.
Indian stock markets
Indian stock market indexes snapped a five-day winning streak and closed marginally lower on Tuesday. The markets opened on a cautious note due to weakness in global markets, as central bank policymakers made hawkish comments in Europe. Investors were also cautious ahead of China’s key economic data due on Wednesday.
The market breadth was negative with advance decline indicating a ratio of 3:5 at the close. FIIs were the net buyers in the equity cash segments while DIIs were the net sellers. FIIs bought shares worth Rs 656.57 crore while DIIs offloaded shares worth Rs 369.29 crore on Tuesday.
Quarterly Earnings for Today
Asian Paints, LTIMindtree, ICICI Prudential Life Insurance Company, Happiest Minds Technologies, Steel Strips Wheels, Star Housing Finance, Ganesh Housing Corporation, Alok Industries, Oracle Financial Services Software, Hindustan Media Ventures, IIFL Finance, Speciality Restaurants, Som Distilleries & Breweries, and Moschip Technologies will announce their third-quarter earnings on January 17.
Stock Market Today
The global cues are negative today. Gift Nifty closed 186 points lower on Tuesday and currently trading marginally higher at 21856 levels. Indian stock markets are likely to open a gap-down today and will remain volatile. Traders should remain cautious, as the market trends may change after the release of China’s economic data.
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News you should read before the trade setup for 17 Jan 2024
On Tuesday, Fitch Ratings affirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-‘ with a stable outlook. According to the rating agency, “India is poised to remain one of the fastest-growing countries globally in the next few years.”
The Fitch rating has made an upward revision to India’s economic growth forecast for the fiscal year concluding March 2023, with the growth rate now seen at 6.9 percent, as compared to a forecast of 6 percent issued in May last year. The agency further indicated a slight moderation in the GDP growth rate to 6.5 percent in fiscal year 2024-25.
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Editor’s Desk
