Canadian stocks ended the day on a flat note

Image Source : Krish Capital Pty Ltd

Index Update:  After opening just a little below the previous week's close, the benchmark S&P/TSX Composite Index fell in the early hours but rose to reach an intraday high of 27,921.39 by pre-noon. From there, the index moved down throughout the day but managed to move up to close at 27,922.85, up by 17.36 points (or 0.06%).

Macro Update:  Federal Reserve Chair Jerome Powell is scheduled to deliver a keynote address at the upcoming Jackson Hole Symposium in Wyoming. His speech may deliver some clues on the direction of the Fed's monetary policy on rate cuts against the backdrop of recent US inflation and jobs data. More crucial inflation data is to due be released tomorrow which could serve as an indicator for Bank of Canada's decision on fixing lending rates. A drop in the domestic inflation rate could trigger the central bank to reduce the borrowing rates.

Top Movers:  Among the individual stocks, North West Company Inc (2.30%), Metro Inc (1.82%), Brp Inc (2.43%), and Sylogist Ltd (0.73%) were the prominent gainers. Dayforce Inc. (26.43%), G Mining Ventures Corp (7.33%), Brookfield Business Partners LP (5.66%), and Energy Fuels Inc (5.17%) were among the prime market-moving stocks.

Our Stance:  Key support is being tested around the 27,700 level. Sustaining price action above this threshold would reinforce the current uptrend and provide a platform for further gains. Conversely, a decisive break below could trigger a near-term pullback, with subsequent support levels at 27,500 and 27,300 on the daily chart.

Commodity Update:  The U.S. dollar held steady on Tuesday as markets awaited the outcome of a White House summit with European nations, seen as pivotal for the next phase of the Ukraine war. Precious metals were mixed: gold rose 0.05% to $3,379.60, silver slipped 0.37% to $37.88, and copper edged up 0.02% to $9,750.00. Brent crude eased 0.11% to $65.53 amid speculation that U.S.-Russia-Ukraine talks may ease sanctions on Russian oil.

Technical Update: 

On Monday, the S&P/TSX Composite Index advanced 17.36 points to close at 27,922.85, posting a modest 0.06% gain. The move was supported by healthy trading volumes, signaling sustained investor confidence in Canadian equities. Sector-wise, consumer non-cyclicals led the rally with a 1.32% increase, reflecting renewed optimism toward defensive and essentials-based industries amid ongoing macroeconomic uncertainties. From a technical perspective, the index maintains a bullish structure, trading comfortably above its 21-period Simple Moving Average (SMA), which continues to act as a dynamic support zone. The Relative Strength Index (RSI) is positioned at 64.55, indicating strong momentum while still leaving room for further upside before entering overbought conditions. Key support is being tested around the 27,700 level. Sustaining price action above this threshold would reinforce the current uptrend and provide a platform for further gains. Conversely, a decisive break below could trigger a near-term pullback, with subsequent support levels at 27,500 and 27,300 on the daily chart.