NIKKEI 225 RISES ON TECHS RALLY; INDUSTRIAL PRODUCTION DISSAPOINTS

Nikkei 225 futures are currently trading at 21515-lower by 0.39% 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 0.43% to close at 21,709.31 on Tuesday. The benchmark index rose today as the stocks of technology firms advanced and investors looked unworried from lower-than-expected quarterly earnings from Japanese companies.

The broader Topix advanced 0.45% to close at 1,575.58 on Tuesday.

Stocks of index-member Screen Holdings rose 3.5% even though it lowered its annual net profit estimate by 5.6%. The chip-making machine manufacturer cut its profit estimate due to weaker sales in its printing-related business and rising costs.

Investors also bought tech stocks today that had been hit by worries about mounting tensions between China and the U.S.

Index heavyweight Fanuc Corp rose 3.14% after exceeding market expectations for its quarterly earnings. The robot maker, however, lowered its annual profit estimates on uncertainties from trade tensions.

Stocks of Food companies ended in positive territory today. Takara Holdings rose 2.74% and NH Foods gained 0.24% on Tuesday.

Stocks of Hitachi climbed 3.0% even though it reported a 16% drop in quarterly operating profit, citing a worsening market for smartphone and car-related materials.

On the other hand, Kawasaki Heavy Industries tumbled 5.7% after the company posted its first quarterly net loss in 10 years.

Index-component Sony reported an 18.4% rise in fiscal first-quarter operating profit after the market close today. Shares of the company, however, dropped 0.085% on Tuesday.

Official data released earlier today showed that Japan’s industrial output dropped to 1-1/2 year lows in June. The Japanese industrial production (MoM) for June came in at -3.6%. The Production change was below the consensus estimates of a fall of 2%.

On the technical front, the RSI is currently at 50.43% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 88% and suggests that the market can move in the downward direction.

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

 

Trade Suggestion- Limit Sell At 21535 Take Profit At 21420 Stop Loss At 21595

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