NIKKEI 225 SLIPS AS EXPORTERS WEAK; BoJ MINUTES AWAITED

Nikkei 225 futures are currently trading at 21475-higher by 0.39% as compared to the previous closing. The contract, however, closed in the negative territory in the last trading session.

In the Cash Markets, the Nikkei 225 edged down 0.08% to close at 21,566.85 on Tuesday. The broad-market index ended slightly lower today as traders took profits on exporters’ shares, but losses were limited by gains in financials which were helped by rising U.S. yields.

The broader Topix inched down 0.21% to close at 1,610.23.

Exporters lost ground as the yen rose against the dollar, with Tokyo Electron falling 0.41% and Panasonic Corp dropping 0.74% after gaining in the previous trading session.

A lack of news from U.S.-China trade talks also dampened sentiment on Tuesday.

Other top losers in the index include- Familymart (fell 5.43%), CyberAgent (fell 3.1%) and Ube Industries (fell 2.9%) on Tuesday.

On the other hand, insurers and banks, which hunt for higher-yielding assets such as foreign bonds, were bought. MS&AD Insurance advanced 0.5% and Dai-ichi Life added 1.3%, while Sumitomo Mitsui Financial Group rallied 1%.

Index heavyweights Fast Retailing (added 0.32%), Softbank Group (inched up 0.41%) and Fanuc (rose 0.81%) posted gains on Tuesday.

Most investors stayed on the sidelines, however, while they await the U.S. Federal Reserve’s latest policy decision after a two-day meeting beginning later in the day. Investors expect the central bank will reinforce its dovish approach toward further interest rate hikes.

The Bank of Japan’s meeting minutes will be released early on Wednesday.

On the data-front, Reuters Tankan Index for March is scheduled to be released early on Wednesday. The index reading was 13 in the previous month. In addition, the final reading of Leading Economic Index for January also scheduled for Wednesday is expected to fall to 95.9 from 97.5 in the previous month.

On the technical front, the RSI is currently at 55.85% and suggests that the market can move in the upward direction. 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 21455 Take Profit At 21575 Stop Loss At 21395

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