NIKKEI 225 UNSTABLE BELOW 21K, TOYOTA FALLS
Nikkei 225 futures are currently trading at 20845-lower by 0.23% 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 0.14% to close at 20,874.06 on Wednesday. The benchmark edged up today with markets barely reacting to U.S. President Donald Trump’s State of the Union address, while attention remained on corporate earnings.
The broader Topix edged down 0.047% to close at 1,582.13 on Wednesday.
Index component Shiseido Co, Japan’s biggest cosmetics maker, rose 4.6% and added 11 positive points to the index. The stock rose after cosmetics maker Estée Lauder Cos Inc. reported strong quarterly results, driven by robust growth in China. Other cosmetics makers followed suit, with Kose rising 3.5% on Wednesday.
Other top gainers in the index include- Yamaha (rose 12.6%), Pacific Metals (rose 5.3%) and SCREEN (rose 3.66%) on Wednesday.
On the other hand, NTT Data plunged 9.2% and took off 22 points from the benchmark after it said it would launch a tender offer for Netyear Group for 850 yen per share. Suzuki Motor fell 4.3% after its operating profit for the October-December quarter dropped 33%.
Index-member Toyota Motor Corp. fell 0.7% after the automaker cut its annual net profit outlook during afternoon trade.
On the economic front, Japan’s Foreign Reserves in US Dollar for January are scheduled to be released on early Thursday. The country’s reserve in Dollar in the previous month were $1,271.0B. In addition, foreign investments in Japanese stocks up till 2nd Feb. is also scheduled to be released on Thursday.
On the technical front, the RSI is currently at 57.19% and suggests that the market can move in the downward direction. The current price is above the MA5. The %K has crossed %D from above to the downside at around 84% 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 20865 Take Profit At 20745 Stop Loss At 20925