Nikkei 225 futures are currently trading at 21625-lower by 0.68% as compared to the previous closing. The contract, however, closed in the positive territory in the last trading session.

In the Cash Markets, the Nikkei 225 inched up 0.19% to close at 21,802.59 on Tuesday. Earlier in the session, the benchmark was trading in negative territory but it turned slightly positive due to a rally in cyclical shares as recent strong Chinese economic data has supported sentiment. The broad-market index closed higher as tech stocks and machinery shares outperformed, while Sony surged more than 9%.

The broader Topix edged down 0.085% to close at 1,618.76.

Tech stocks, machinery and chip equipment shares advanced after the Philadelphia SE Semiconductor Index rose overnight. TDK Corp advanced 1.9% and Tokyo Electron soared 1%.

Sony Corp stocks surged after sources told Reuters that Third Point, which has about $14.5 billion in assets under management, is raising a dedicated investment vehicle to target between $500 million and $1 billion to buy more Sony stocks.

Cyclical shares were bought by investors on Tuesday. Shipper Mitsui OSK Lines gained 0.53%, industrial robot maker Fanuc Corp rose 2.3% and Yaskawa Electric added 1.76%.

Exporters rallied, with Panasonic Corp jumping 1.58% and Advantest Corp rising 3.9% on Tuesday. Index heavyweight, Fast Retailing rose 0.13% for the day.

On the other hand index-components Tokyo Electric Power Co fell 2.9%, Mitsui Fudosan lost 1.5% and Kajima Corp fell 1% on Tuesday.

On Thursday, index-member Yaskawa Electric will start April’s parade of earning reports for the year ended 31st March.

On the data-front, PPI for March is scheduled to be released early on Wednesday. The PPI is expected to rise by 1.1% on a YoY basis. The PPI rose by 0.8% in the previous month.

On the technical front, the RSI is currently at 55.25% 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 94% 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 21650 Take Profit At 21530 Stop Loss At 21710

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