NIKKEI 225 RISES AS MINING, REFINERY SHARES GAIN; CPI MEETS EXPECTATIONS

Nikkei 225 futures are currently trading at 22285-higher by 0.25% 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 0.19% to close at 22,259.74 on Tuesday. The benchmark hit a 4-1/2-month high of 22,345.19 in the last week. The broad-market index inched up today as oil-related shares rose after the U.S. announced that it will eliminate in May all waivers, while index-heavyweights Fast Retailing and Yaskawa Electric fell on profit-taking.

The broader Topix gained 0.27% to close at 1,622.97 on Tuesday.

Oil and mining sectors led the gains, adding 1.3% and 2.5% respectively on Tuesday. Inpex Corp gained 2.8%, while JXTG Holdings jumped 1.11%.

Crude prices were hovering near 2019 highs after the U.S. announced that it will eliminate in May all waivers granted to eight countries allowing them to buy Iranian oil without facing U.S. sanctions.

Investors also booked profit on recent gainers ahead of the 10-day Golden Week holiday, with some companies releasing their annual earnings later this week. Index-member Fast Retailing lost 1.8% after it touched a record high on the previous day. Yaskawa Electric fell 2.9% after the stock rose to its 10 month-highs also on Monday.

Utilities, drugmakers, and railroad companies also rose on Tuesday. Chubu Electric Power added 1.3%, Daiichi Sankyo jumped 2.6% and West Japan Railway advanced 1.7%.

Construction equipment makers Komatsu rose 0.33% while Hitachi Construction Machinery lost 0.21%.

On the data front, the Bank of Japan Core CPI (YoY) released earlier today came in at 0.5%. The CPI change was in line with market expectation. The Bank of Japan’s interest rate decision is scheduled to be released on Thursday. No change in policy is expected and Interest rates are expected to hold at -0.10%.

On the technical front, the RSI is currently at 65.53% and suggests that the market can move in the upward direction. The current price is above the MA5. 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 22265 Take Profit At 22365 Stop Loss At 22215

 

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