Nikkei has halted its 1-week of downtrend after Fed Chairman Powell more dovish comments yesterday.Fed Chairman Powell said that central bank prepared to take necessary action to save US economy. US stock markets jumped more than 2% after Fed remarks as investors predicted a rate cut in coming months. US 10 year yield jumped more than 4% and spread between 3 month and 10 year slightly reduced from 25 basis point to 22 basis point. The index recovered more than 500 points and hits high of 20803 and is currently trading around 20778.
On the higher side, near term resistance is around 20844 (200-H MA) and any violation above will take the index to next level till 21000/21280.
The near term support is around 20615 and any convincing break below will drag the index down till 20458/20288.
It is good to buy on dips around 20350-400 with SL around 20200 for the TP of 20780/21000.
