NIKKEI 225 RISES ON CHIP-RELATED STOCKS GAIN; HOUSEHOLD SPENDING DISAPPOINTS

Nikkei 225 futures are currently trading at 21423-lower by 0.74% 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 added 0.99% to close at 21,587.78 on Tuesday. The benchmark index rose today ahead of high-level U.S.-China trade talks to resolve a damaging trade war.

Trading volumes were below average today as many traders remained on the sidelines ahead of key trade talks.

The broader Topix advanced 0.87% to close at 1,586.50 on Tuesday.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will meet Chinese Vice Premier Liu He on 10th-11th October for trade talks. Hopes for a trade deal, however, dimmed after the U.S. President said on Monday that a quick agreement was unlikely.

Overnight, the U.S. dollar rose against the Japanese Yen, providing a boost for stocks of Japanese exporters. Omron Corp rose 2.41% and Toyota Motor Co advanced 1.45%.

Semiconductor-related stocks gained after South Korean company Samsung signaled slightly better than expected third-quarter profit which helped in reducing traders’ concerns about the smartphone market.

Screen Holdings advanced 3.7%, Sumco rose 3.8% and Advantest rose 4.4% on Tuesday.

Stocks of Food companies ended in positive territory today. Takara Holdings rose 2.37% and NH Foods gained 0.78% on Tuesday.

On the economic front, Household Spending (MoM) for August released earlier today came in at 2.4%. The index change was below the market expectation of 2.8%.

On the technical front, the RSI is currently at 46.85% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and is heading downwards.

Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

 

Trade Suggestion- Limit Sell At 21435 Take Profit At 21300 Stop Loss At 21365

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