- Nikkei225 declines drastically after making a high of 19457 on account of first 25bpbs rate hike by Fed .It is currently trading around 19167 1.1% lower.
- US Fed hiked federal funds rate by 25bpbs from 0.5% to 0.75% and is expected to hike more in the coming year on account of solid jobs growth.
- Due to improvement in labor markets, Fed now projected Federal funds rate to be at 1.4% in 2017 compared to forecast of 1.1% on September.
- Technically index is expected to decline further if it breaks below 18800 (200- H MA).
- •On the higher side, major resistance is around 19445 (161.8% retracement of 19347 and 19187) and any break above targets 19600 (61.8% retracement of in the short term.
- •The index immediate support is at 18800 (200- HMA) and any break below targets 18685 (61.8% retracement of 18224 and 19457)/18200.
- •The index should break below 18000 for further weakness.
It is good to sell on rallies around 19300 with SL around 19500 for the TP of 18800.
