NIKKEI 225 INCHES DOWN ON WEAKER ASIA STOCKS; CPI DISAPPOINTS

Nikkei 225 futures are currently trading at 21540-lower by 0.20% 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 inched down 0.37% to close at 21,449.39 on Tuesday. The benchmark hit its highest level (21,610.88) since mid-December earlier in the day. The broad-market index fell due to a decline in Asian equities and also due to selling pressure ahead of the fiscal year-end in March.

The broader Topix declined 0.23% to close at 1,617.20.

Exporter stocks such as automakers rose following the recent weakening of the yen against the dollar. Mazda Motor Corp rose 0.3%, Honda Motor Co added 0.1% and Nissan Motor Co climbed 0.5%.

Defensive stocks such as utilities and healthcare performed well, with Tokyo Electric Power Co gaining 1.1% and drugmaker Daiichi Sankyo Co rising 2.7% on Tuesday.

On the other hand, Petroleum and natural gas developer Inpex Corp plunged 3.8% and refiners Showa Shell Sekiyu KK and Cosmo Energy Holdings Co fell 2% and 2.3%, respectively, following a steep drop in crude prices.

Many manufacturing stocks also fell on Tuesday. Robot maker Fanuc lost 1.29% and Panasonic fell 1.57%.

Other top losers in the index include- TDK (fell 2.1%), Sompo (fell 2.03%) and JGC (fell 1.92%) on Tuesday.

On the data-front, BoJ Core CPI (YoY) released earlier today came in at 0.5%. The CPI change was below the consensus estimates of 0.6%.

23 of the 33 subsectors at the Tokyo Stock Exchange declined today, led by mining.

On the technical front, the RSI is currently at 63.32% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed %D from above to the downside at around 95% and suggests that the market can move in the downward 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 21510 Take Profit At 21630 Stop Loss At 21450

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