Strategy:
The SET has increased by nearly 200 points YTD, while the supporting factors remain the same. In this regard, FSS views that the SET has factored in most of them and there might be selling that will pressure the index to fall. For this reason, we recommend that investors wait to buy on weakness. In particular, we expect the SET to move down to technical support near 1360 (+/-). If the index increases, particularly closer to 1420 or above such level, we suggest that investors sell to trim portfolios and hold cash, waiting for the market to fall.
Technical stocks: ARROW, TFG, IVL(buy back)
Market direction:
Late last week, the SET began to fall again after the index hit a new high near 1410 (+/-) and saw selling pressure. FSS views that the selling is due partly to market uncertainty over global economy and concern that the FED would raise policy rate sooner than expected. Meanwhile, several international markets were closed to observe Good Friday. Given that, Thai equity markets lacked leading indicators. However, the Thai main index has climbed by nearly 200 points in the last three months without any fresh catalyst. In addition, a continued recovery in global crude is hinged on certainty over a meeting among oil producing countries on April 17. This morning, Asian equity markets that are open saw volatility and retreated. As a result, FSS expects the SET to move sideways down, albeit rebounds to positive territory in the near term. With that, we recommend that investors wait to buy on weakness.
Support 1393-1390 , 1385-1380
Resistance 1397-1402 , 1407-1412
Source: fnsyrus.com / settrade.com
