Asian markets trading slightly higher following foot steps of US markets. US markets closed slightly higher on account of better than expected Q2 results. Almost more than 80% of companies in S&P500 posted better than expected corporate earnings. China China reacted to the recent trade tariff by imposing import tariff of $60 billion worth of U.S goods on Friday. Mr Trump threatened to apply tariffs to all $505 billion of Chinese imports. Chinese market halted its weakness and shown a minor of jump of more than 1%. It is currently trading around 2738. US market has closed slightly higher yesterday with Dow Jones at 25502 (0.16% higher) and S&P500 2850 (0.35% higher). USD/JPY which is the main indicator of geo political tension is trading slightly lower on rising trade war tension . US futures is trading flat with Dow Jones at 25533 (0.16% higher) and S&P500 2849 (0.07% higher). Nikkei is currently trading around 22605 0.15% higher as index heavy weight Softbank posted better than expected quarterly results.
USD/JPY is trading slightly lower after hitting high of 112.15 and is currently trading around 111.32 (0.06% lower).
On the lower side, index major support is around 22570 (55- day EMA) and any break below will drag the index down till 22370 (200- day MA)/22240/22000/21750.
The near term resistance is around 22650 and any convincing break above will take the index to next level till 22800/23050/23200.
It is good to buy on dips around 22350-400 with SL at 22150 for the TP of 23040.
