Strategy:
The SET began to fall again. However, there was still buying to support the market. As a result, there is prospect that the index will move steady. However, we expect upside to be limited and there is still risk that it will fall because the SET has rallied quite sharply, while there is no fresh catalyst to provide support. For this reason, FSS recommends that investors wait to buy on weakness. What's more, if the index increases, especially to 1420 or higher, it is suggested that investors sell to trim portfolios and hold cash.
Technical stocks: AAV, CKP, CBG(short)
Market direction:
Yesterday, most Asian equity markets remained under pressure by the weak global crude after a oil-producing-countries meeting scheduled on April 17 remains highly uncertain. This has pressured global crude, causing it to fall by nearly 4% yesterday's intraday. Given that, both U.S. and European stock markets dropped in the evening. However, Wall Street managed to slightly recover in the end thanks to support from a smaller-than-expected rise in the U.S. weekly jobless claims. This implies strength in the U.S. labor market. Moreover, global crude also turned to end lower by less than 1%. This morning, sentiment is quite dull because many are closed to observe Good Friday today (March 25). In Asia, those that remain open were volatile, swinging back and forth in narrow range after the bell. For these reasons, FSS expects the SET to stabilize and move sideways in limited range. However, if there is no new catalyst to support, we believe that the SET will fall going forward. In this regard, we maintain our call for investors wait to buy on weakness.
Support 1403-1400 , 1396-1390
Resistance 1407-1410 , 1413-1416
Source: fnsyrus.com / settrade.com
