NIKKEI 225 ABOVE 22K ON CPI DATA, MA5 & MA20 SUPPORTING UP MOVE

Nikkei 225 futures are currently trading at 22005-higher by 0.045% as compared to the previous closing. The contract has been closing in the positive territory since the last two trading sessions.

In the cash markets, the Nikkei 225 inched up 0.64% to close at 21,952.40 points on Tuesday. The index rose today on gains in the Insurance, Mining and Communication sectors. However losses in Pharmaceuticals and Utilities sectors limited gains.

The broader Topix added 0.73% to close at 1,644.16 on Tuesday.

Among the best performer of the session in the index was Meidensha Corp. which rose 3.88% on Tuesday. Meanwhile, Softbank Corp. closed higher by 3.7%. The Chiba Bank, Ltd. closed higher by 3.64%.

Index-member Renesas Electronics climbed 2% today amid hopes for a strong holiday-shopping season.

The Nikkei Volatility which measures the implied volatility of Nikkei 225 options, was up 0.54% to 20.40.

Among the worst performers on the benchmark was Shionogi & Co., Ltd. which fell 5.20% today. Sumitomo Dainippon Pharma Co Ltd declined 4.29% on Tuesday.

Index-member Pioneer Corp. fell to 5-year low today. The stock closed down by 3.19%.

On the economic front, the Bank of Japan Core CPI (YoY) released earlier today came in at 0.6%. The index change was above the market expectation of 0.5%.

On the technical front, the RSI is currently at 51% and suggests that the market can move in the upward direction. The current price is above the MA5.The current price is above the middle line of the Bollinger Bands and is heading upwards

Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.

 

Trade Suggestion-Limit Buy At 21950, Take Profit At 22150 Stop Loss At 21850

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