NIKKEI 225 FALLS BELOW MA5 ON ESCALATING SINO-U.S. TENSIONS

Nikkei 225 futures are currently trading at 20490-higher by 1.01% 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 lost 0.65% to close at 20,585.31 on Tuesday. The benchmark index plummeted to its lowest level since 10th January earlier in the session. The Nikkei 225 fell today on escalating Sino-U.S. trade tensions after Washington designated China a currency manipulator.

The broader Topix declined 0.44% to close at 1,499.23 on Tuesday.

The U.S. on Monday accused China of manipulating its currency after Beijing let the Yuan fall to its lowest level in more than a decade.

Japanese firms with exposure to global trade fell on Tuesday due to rising Yen. Softbank Group lost 2.91% while Toyota Motor dropped 2.41%.

Honda Motor hit its 3-year lows today while stocks of Panasonic touched their lowest level in 3-1/2 years.

The transport equipment maker index dropped 0.8% on Tuesday.

Sharp declines in the market prompted buybacks in some of the battered stocks.

Steelmaker stocks, one of the early victims of global trade tensions, gained 1.2% today. Brokerage stocks also advanced 1.2% on Tuesday.

Stocks of Suzuki Motor inched up 0.28% after falling to more than 10% earlier in the session. The automaker’s stocks plunged due to disappointing quarterly earnings results.

Subaru rose 8.09% after its quarterly profits beat market expectations.

On the technical front, the RSI is currently at 29.47% and suggests that the market can move in the upward direction. The current price is below the MA5. The %K has crossed the %D from below to the upside at around 14% and suggests that the market can move in the upward direction.

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

 

Trade Suggestion- Limit Buy At 20460 Take Profit At 20660 Stop Loss At 20360

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