NIKKEI 225 FALLS ON SELLING OF DEFENSIVE STOCKS
Nikkei 225 futures are currently trading at 21515-lower by 0.46% 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 down 0.017% to close at 21,505.31 on Tuesday. The broad-market index hit a one-month high of 21,744.64 earlier in the session.
The benchmark ended slightly lower today, as selling in defensive shares offset gains by financial shares buoyed by rising U.S. bond yields.
The broader Topix inched down 0.25% to close at 1,611.69.
Defensive shares fell today, while cyclical shares advanced on encouraging factory data in the United States.
Tokyo Electric Power Co fell 3.5%, realtor Mitsui Fudosan declined 2.4% and East Japan Railway Co shed 2.6%.
Cyclical shares were bought by investors on Tuesday. Shipper Mitsui OSK Lines gained 1.3%, industrial robot maker Fanuc Corp rose 4.5% and Yaskawa Electric added 2.6%.
Insurers and banks, which hunt for higher yielding assets such as foreign bonds, were bought supported by rising U.S. bond yields. The yield on U.S. benchmark 10-year Treasury note rose around 9 basis points for its largest single-day jump since 4th January.
Mitsubishi UFJ Financial Group rose 1.7%, Sumitomo Mitsui Financial Group added 1.5%, and Dai-ichi Life Holdings advanced 2.8%.
Exporters rallied, with Panasonic Corp jumping 1.32% and Advantest Corp rising 4.54% on Tuesday. Index heavyweight, Fast Retailing fell 1.31% for the day.
On the data-front, Monetary Base (YoY) released earlier today came in at 3.8%. The index change was below the market expectation of 4.4%.
On the technical front, the RSI is currently at 56.04% and suggests that the market can move in the downward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands but is heading downwards.
Overall Bias is negative and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 21545 Take Profit At 21445 Stop Loss At 21595