DAX Index Daily Fundamental Forecast – February 1, 2018

The DAX index had a tight day of trading yesterday as the index bulls tried to make a stand and ensure that the fall does not last for long. The stock markets around the globe have been under pressure over the last few days and though there has not been much fundamentals to drive this move lower, there was an urgent need for the bull to intervene to ensure that it does not become a total rout.

DAX Likely to Find Support

That kind of a stance was made yesterday as the month end flows continued to ebb and flow for much of the day. The option expiries and the positioning for the next month seemed to be dominating the moves in the DAX for much of the day but at the end of it all, there was not much change in the market from where it all began. The day also saw the release of the inflation data from the Eurozone but that came in as per expectations which ensured that the impact on the index was minimal.

There was also a increase in the risk sentiment around the world which helped to keep the index well bid for much of the day. As we had mentioned in our forecast yesterday, we expect the index to see some strong support coming in at the 13200 region and this was seen yesterday as well as the bulls managed to hold the region which helped the index to close above it for the day.

Looking ahead to the rest of the day, it is the first day of the month and so we can safely expect some consolidation. The FOMC meeting minutes, that were released yesterday, failed to have much of an impact and with the support in the DAX coming in around the 13200 region, expect some steady opening for the markets during the day and we expect the buying to pick up a bit later in the day.