NIKKEI 225 EDGES UP ON HEAVYWEIGHTS GAIN; PPI AWAITED
Nikkei 225 futures are currently trading at 21480-lower by 0.37% as compared to the previous closing. The contract closed in the negative territory in the last trading session also.
In the Cash Markets, the Nikkei 225 edged up 0.14% to close at 21,565.15 on Tuesday. The benchmark index rose, but the broader market declined as technology companies fell in step with Apple.
The broad market edged up due to gain in few heavyweights. FamilyMart surged 4.10%, Fast Retailing added 1.54% and Fanuc Corp edged up 0.10%.
Defensive stocks also rose today as traders continued to take a long position in them since they are less susceptible to global risks.
Retailers gained 0.3% on Tuesday, with Marui Group rising 1.3% and J. Front Retailing adding 0.40%.
Stocks of Food companies also ended in positive territory today. Takara Holdings gained 0.34% and NH Foods added 1.9% on Tuesday.
Telecom Companies outperformed on Tuesday. Softbank Corp added 0.4% and KDDI gained 2.27%.
On the other hand, stocks of semi-conductor related firms fell today. Stocks fell after Apple dragged U.S. tech shares down on Monday following a rating downgrade. Taiyo Yuden plunged 4% and Murata Manufacturing dropped 2.0%.
Companies with high exposure to China such as factory automation machinery firms and construction equipment makers also outperformed on Tuesday. Komatsu Ltd lost 0.86% while Yaskawa Electric plunged 3.22%.
The broader Topix lost 0.22% to close at 1,574.89 on Tuesday.
The broad-market index has been stuck in a narrow trading range between 21,500 and 21,800 in June.
On the economic front, the Japanese PPI for June is scheduled to be released early on Wednesday. The PPI is expected to rise by 0.4% in June on a year-on-year basis.
On the technical front, the RSI is currently at 54.78% and suggests that the market can continue trading sideways. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 84% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Sell At 21505 Take Profit At 21390 Stop Loss At 21560