Trade Setup for Wednesday: Stock Market Today (7 February 2024)

 

Trade Setup for Wednesday, Feb 7, 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 higher following the gains from Wall Street overnight. The market sentiments are positive as investors assessed quarterly earnings from the US as well as Asian corporates. Japan’s Nikkei is trading marginally lower by 0.18%, while Australia’s S&P ASX 200 index is trading higher by 0.73%

South Korea’s Kospi index extended its early gains and is trading higher by 1.70%. Shanghai Index is trading higher by 0.35%, while Hang Seng is up by 1.35%, both the indexes gained strongly in the previous session. The Straits Times is trading higher by 0.95% at 7.15 am IST.

 

U.S. Stock Market Indexes Updates

 

The US stock market indexes ended with moderate gains on Tuesday as investors focused on more corporate earnings, while the upside remained capped in Nasdaq as chip-related stocks dipped after quarterly earnings. The shares of Eli Lilly, Palantir, and Spotify announced quarterly earnings and impressed the Street. Palantir Technology’s share gained 30.74% after announcing Q4 earnings that beat both top and bottom lines.

Meanwhile, the chip stocks Nvidia, AMD, and Rambus fell sharply after the announcement of Q4 earnings. Federal Reserve officials reaffirmed that the central bank is not in a hurry to cut rates, emphasizing that there is more work to be done on inflation to achieve the set target of 2%.

The key US stock market indexes, the Dow Jones Industrial Average (DJIA) and S&P 500 index gained 0.37% and 0.23% respectively, while the tech-heavy Nasdaq ended edge higher by 0.07% on Tuesday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed higher on Tuesday despite uncertainty about early rate cuts. On the economic front, German factory orders unexpectedly rose in December, while Eurozone retail sales fell in December, according to Eurostat. The S&P Global/CIPS construction purchasing managers’ index rose in December but remains in contraction.

The shares of BP gained above 5% after the British oil and gas giant announced a $1.75bn share buyback. The pan-European Stoxx 600 index closed higher by 0.63% with major sectors ending in the green. Oil & Gas stocks led by Britain’s BP gained the most while Utilities stocks dipped on Tuesday.

The key European stock market indexes, CAC and DAX closed higher by 0.64% and 0.76% respectively, while the UK’s FTSE was up by 0.89% on Tuesday.

 

Indian stock markets

 

Indian stock market indexes erased previous session losses and closed higher on Tuesday. The equity benchmarks opened higher despite negative global cues and extended their early gains on the back of buying in IT and Metal stocks. The upside remained capped due to profit booking in the banking stocks.

The market breadth was strong with the advance-decline indicating a 3:2 ratio at the close. FIIs and DIIs both were net buyers in the equity cash segments. FIIs bought shares worth Rs 92.52 crore while DIIs purchased Rs 1096.26 crore on Tuesday.

 

Quarterly Earnings for Today

 

Tata Consumer Products, Power Grid Corporation of India, Nestle India, Lupin, Manappuram Finance, Apollo Tyres, Ashoka Buildcon, Borosil Renewables, Parag Milk Foods, Protean eGov Technologies, Sobha, Trent, Cummins India, General Insurance Corporation of India, JK Paper, and Zuari Agro Chemicals will announce their quarterly earnings on February 7.

 

Stock Market Today

 

The cues from Wall Street and Asian Markets are positive today. Gift Nifty index was closed 112 points higher on Tuesday and currently trading marginally higher at 22126 level. The indication from global markets and Gift Nifty both are strong today. Indian stock market indexes are likely to open a gap-up today and remain volatile.

 

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Editor’s Desk