NIKKEI 225 FALLS ON CYCLICAL STOCKS LOSSES; RETAIL SALES DISAPPOINT

Nikkei 225 futures are currently trading at 22345-higher by 0.36% as compared to the previous closing. The contract closed in the negative territory in the last trading session.

In the Cash Markets, the Nikkei 225 lost 2.30% to close at 21,995.04 on Monday. It was its lowest level since 15th June. Cyclical shares were the top losers today.

The index also dropped below a major support level of MA25 for the first time since 7th April.

The Nikkei 225 fell today tracking US stocks loss after many US states imposed business restrictions to contain the spread of the coronavirus.

The market sentiment was also dampened after the Wall Street Journal reported that the Phase 1 deal between Washington and Beijing could be at risk.

The broader Topix lost 1.78% to close at 1,549.22. It was its lowest closing level in two weeks. All the thirty-three sub-indices on the Tokyo Stock Exchange closed in negative territory today.

Highly cyclical iron & steel and air transport indices were among the top losers on the main bourse.

Tokyo-listed banks tracked US peers lower on Monday.

Other top losers in the index include- Canon Inc. (fell 6.4%), Nippon Sheet Glass Co Ltd (declined 6.3%) and Dentsu Group Inc. (dropped 5.7%) on Monday.

On the other hand, top gainers in the index include- Meiji Holdings Co Ltd (surged 1.8%), Taisei Corp (rose 0.1%) and Komatsu Ltd. (advanced 0.1%).

On the economic front, Japan’s Retail Sales (YoY) for May released earlier today came in at -12.3%. Retail Sales were below the consensus estimates of a fall of 11.6%.

On the technical front, the RSI is currently at 54.41% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle band of the Bollinger Bands but 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 22310 Take Profit At 22610 Stop Loss At 22160

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