NIKKEI 225 PLUNGES TO 1-WEEK LOW ON PROFIT-TAKING, MOMENTUM BEARISH
Nikkei 225 fell 0.6% to close at 23,975.62 on Thursday. The benchmark dropped to a one-week low on Thursday. The index fell as investors took profits after a recent rally lifted the index to a 27-year high on Friday (28th Sept.).
The Topix index fell 0.08% to close at 1,801.19.
Index-heavyweight stock Fast Retailing, which rose 2% last week, fell 0.9% on profit-taking, taking a hefty 20 basis points off the Nikkei.
Top losers in the Nikkei 225 include Takashimaya (fell 2.2%), Pioneer (plunged 2.5%), TDK (fell 2.6%) and Dentsu (fell 2.8%) on Thursday.
Toyota Motor Corp bucked the weakness, rising 0.6% after it and SoftBank Group Corp said they will team up to develop car services that rely on self-driving technology.
On the economic front, Household Spending (YoY) for August is scheduled to be released late on Thursday at 7:30 pm ET. Household spending growth is expected to fall to 0% as compared to 0.1% growth registered in July.
On the technical front, the RSI is currently at 57.15% and suggests that the market can move in the downward direction. The current price is below 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 tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 23875, Take Profit At 23675 Stop Loss At 23975