NIKKEI 225 RISES ABOVE MA5; STRONG CHINESE STOCKS BOOST MOOD
Nikkei 225 futures are currently trading at 20370-higher by 1.14% as compared to the previous closing. The contract closed in the Positive territory in the last trading session also.
In the Cash Markets, the Nikkei 225 inched up 0.96% to close at 20,555.29 on Tuesday. It was its highest closing level since December 19. The broad market index rose today supported by buying of electronic component makers and other exporters as a weaker yen boosted sentiment. The sentiment was also supported by strong China and Hong Kong stock markets as Beijing signaled there will be more stimulus to bolster its slowing economy.
The broader Topix added 0.9% to close at 1,542.72 on Tuesday.
Among top gainers in the index, Tokyo Electron Ltd surged 3.2%, Kyocera Corp. gained 3.3% and TDK Corp rallied 4% on Tuesday.
Other top gainers in the index include Olympus Corp. (rose 17.48%), Hitachi (gained 7.08%), Yaskawa Electric Corp. (surged 6.4%) and Fanuc Corp. (rose 4.74%) on Tuesday.
On the economic front, Machine Tool Orders (YoY) for December released earlier today came in at -18.3%. Orders fell by 17% YoY in the previous month. In addition, the PPI for the month of December is scheduled to be released later today. The PPI is expected to fall 0.3% on a month-on-month basis. The PPI fell by 0.3% MoM in the previous month.
On the technical front, the RSI is currently at 50.69% and suggests that the market can continue trading sideways. The current price is above the MA5 (20305). 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 20320 Take Profit At 20440 Stop Loss At 20260