Nikkei set to rise but volume may stay depressed

Pedestrians are reflected on a screen showing stock indexes of Nikkei (L), Dow Jones (R) and Nasdaq outside a brokerage in Tokyo June 16, 2011.

TOKYO (Reuters) - The Nikkei average looks set to trade at the top of its well-trodden post-quake range on Wednesday after Wall Street rallied on easing worries over Greece, although uncertainty about a long-term solution may keep volume low.

The benchmark index will likely open well above the top of the Ichimoku cloud and resistance is seen around 9,751 -- an intraday high marked on May 13.

"If the Nikkei can pierce above that and close near its 200-day moving average at 9,855 it will be a strong signal that the bulls have stepped into the market quite aggressively," said Takashi Hiroki, chief strategist at Monex Securities.

"But I think everyone will be cautious ahead of votes in Greece later this week, so any gains will likely be made on relatively thin volume," said Hiroki.

Greece's parliament will vote Wednesday and Thursday on a package of spending cuts, tax hikes and privatizations required by international lenders as a condition for further aid.

A survey by the Nikkei daily showing retailers predict stronger results for the June-August will likely keep the sector in focus after having posted strong gains for the last two sessions.

Nikkei futures in Chicago ended at 9,785 up from their Osaka close of 9,650.

The benchmark Nikkei .N225 rose 0.7 percent to 9,648.98, on Tuesday. The broader Topix index .TOPX gained 0.6 percent to 830.34.

Analysts said the Nikkei is expected to trade between 9,650 and 9,800.

Many market players expect the Nikkei to trade between 9,400 and 9,800 until more convincing signs of a recovery in Japanese corporate earnings are seen.

STOCKS TO WATCH

--JFE Holdings Inc (5411.T); Itochu Corp (8001.T); Nippon Steel Corp (5401.T); Sumitomo Metal Industries Ltd (5405.T)

JFE Steel Corp, a unit of JFE Holdings, and Itochu Corp will buy out the stakes held by Nippon Steel Corp and Sumitomo Metal Industries Ltd in the operator of the Namisa mine in Brazil, the Nikkei business daily said.

--Kyocera Corporation (6971.T)

Kyocera will buy Danish carbide tool maker Unimerco for about 20 billion yen ($247.2 million) to expand in Europe and target clients from the automobiles and aviation sectors in Japan and Asia, business daily Nikkei said.

-- Chubu Electric Power Co (9502.T)

Chubu said on Tuesday it now expects to secure all its additional fossil fuel needs for the business year ending next March to make up for the lost output from its sole Hamaoka nuclear plant.

(Reporting by Antoni Slodkowski; Editing by Edwina Gibbs)