NIKKEI 225 EDGES UP AS INVESTORS AWAIT BOJ DECISION
Nikkei 225 futures are currently trading at 21785-higher by 0.16% as compared to the previous closing. The contract, however, closed in the negative territory in the last trading session.
In the Cash Markets, the Nikkei 225 added 0.059% to close at 22,001.32 on Tuesday. It was its highest closing level since 26th April.
The broad-market index ended in positive territory for the 10th straight day. It was also its longest rising streak since October 2017. The broad-market index rose today as rising oil prices boosted oil and gas-related companies.
The broader Topix inched up 0.29% to finish its trading day at 1,614.58 on Tuesday. It was also its highest closing level in 4-1/2 months. Mining and oil & coal products were the top two performing subsectors on Tokyo’s main bourse.
Oil and gas developer Inpex Corp climbed 9.71% and global engineering company JGC surged 5.64%.
Domestic-demand sensitive shares also outperformed on Tuesday. Drug-maker Daiichi Sankyo added 0.76% while Realtor Mitsui Fudosan rose 4.41%.
On the other hand, shippers and airlines-vulnerable to soaring oil prices-were worst two performing sectors on Tuesday.
SoftBank Group fell 3.04% after an office-sharing firm it backs delayed a planned listing.
Market participants broadly remained on the sidelines ahead of key policy decision by the Bank of Japan on Thursday. No change in policy is expected and Interest rates are expected to hold at -0.10%.
The U.S. President said on Monday that Washington had reached initial trade agreements with Tokyo on digital trade and tariffs that will not require congressional approval. The news supported sentiment in the Tokyo share market.
On the technical front, the RSI is currently at 71.81% 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 below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Buy At 21770 Take Profit At 21910 Stop Loss At 21700