NIKKEI 225 FALLS BELOW MA5 ON WEAK U.S. MANUFACTURING DATA
Nikkei 225 futures are currently trading at 21303-lower by 1.67% 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 lost 0.49% to close at 21,778.61 on Wednesday. The broad-market index dropped today after weak U.S. manufacturing data indicated that the Sino-U.S. trade dispute is slowing global growth.
Data released on Tuesday showed that manufacturing activity in the U.S. plunged to a more than 10-year low in the last month as the trade dispute weighed on exports.
Exporters and Heavy equipment makers led declines today.
Top losers in the index include Yaskawa Electric (dropped 4.2%), Rakuten (declined 4.8%) and Nissan Chemical (dropped 5.4%).
On the other hand, top gainers in the index include Casio Computer Co Ltd (gained 2.7%), KDDI Corp. (advanced 2.9%) and Kansai Electric Power Co (rose 3.2%).
There were 150 losers on the benchmark index today against 69 gainers.
The broader Topix inched down 0.42% to close at 1,596.29.
Domestic-demand sensitive shares ended mixed on Wednesday. Drug-maker Daiichi Sankyo added 0.71% while Realtor Mitsui Fudosan fell 0.49%.
On the data-front, Household Confidence for September released earlier today came in at 35.6. The index reading was below the market expectation of 38.2.
On the technical front, the RSI is currently at 41.71% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed %D from above to the downside at around 97% 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 21320 Take Profit At 21200 Stop Loss At 21380