NIKKEI 225 RISES ON WEAKER YEN, WALL STREET RALLY; PPI AWAITED
Nikkei 225 futures are currently trading at 21250-higher by 0.63% 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 advanced 1.79% to close at 21,503.69 on Tuesday. The benchmark index hit its highest level (21,568.48) since 6th March earlier in the session. The broad-market index rose today as a combination of a tech-led rally on Wall Street, gains in Asian markets and extended falls in the yen led to broad-based buying.
The broader Topix added 1.52% to close at 1,605.48.
Japanese technology stocks tracked their U.S. peers higher. Chip equipment manufacturer Tokyo Electron gained 2.1%, TDK Corp added 4.5% and silicon products maker Sumco Corp rose 2.2%.
Healthcare and medical device maker Omron Corp surged 4.4% following the company’s inclusion in the index starting from 18th March.
Other top gainers in the index include- CyberAgent (rose 7.1%), TDK Corp. (rose 4.6%) and Yasakawa Electric (rose 4.7%) on Tuesday.
The yen fell against the dollar for the second day, lifting exporters. Honda Motor Co advanced 1.1%, Panasonic Corp added 2.2% and robot manufacturer Fanuc Corp rose 2.3% on Tuesday.
All of the 33 sub-indexes on the Tokyo Stock Exchange were in positive territory, led by securities and electric machinery.
On the data-front, Core Machinery Orders for January are scheduled to be released early on Wednesday. Orders are expected to fall 1.5% on a MoM basis from a fall of 0.1% in the previous month. In addition, Producer Price Index for February also scheduled for Wednesday is expected to rise 0.1% on a MoM basis. The PPI index fell by 0.6% in the previous month.
On the technical front, the RSI is currently at 51.25% and suggests that the market can continue trading sideways. The current price is above the MA5 (21024). The %K has crossed %D from below to the upside at around 10% and suggests that the market can move in the upward direction.
Overall Bias is positive and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 21230 Take Profit At 21350 Stop Loss At 21170