NIKKEI 225 JUMPS ABOVE MA5 ON TRADE OPTIMISM
Nikkei 225 futures are currently trading at 20295-higher by 0.30% as compared to the previous closing. The contract has been closing in the Positive territory since the last two trading sessions.
In the Cash Markets, the Nikkei 225 rose 1.10% to close at 20,427.06 on Wednesday. The broad-market index rose for a third day on Wednesday as signs of progress in Sino-U.S. trade talks boosted confidence, offsetting weakness in chip-related shares.
The broader Topix added 1.1% to close at 1,535.11.
The U.S. and China have extended trade talks in Beijing for an unscheduled third day as the two countries look to resolve their bitter trade dispute.
Exporters attracted buyers, with index-members Panasonic and Komatsu rising 3.2%, while Kyocera rose 1.5% on Wednesday.
Index-constituent Astellas Pharma rose 2.7% to a three-week high after the company said its drug Evenity received a world-first approval in Japan for treatment of osteoporosis in patients at high risk of fracture.
Bucking the trend, chip equipment makers and silicon products manufacturers underperformed, with Advantest Corp falling 2.5% and Sumco Corp closing 0.1% higher after falling as much as 3.2%. The market’s overall gains helped some firms pare their losses.
Goldman Sachs forecast a tough year for chipmakers, while Samsung Electronics estimated a decline in quarterly operating profit for the first time in two years.
Other top gainers in the index include Oji (rose 3.65%), Eisai (gained 3.56%) and Pacific Metals (rose 3.43%).
On the technical front, the RSI is currently at 49.40% and suggests that the market can move in the upward direction. The current price is above the MA5 (20251). The current price is above the middle line of the Bollinger Bands and 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 20250 Take Profit At 20370 Stop Loss At 20200