Strategy: Although the SET continued to rebound amid declines lately, we expect upside to be quite limited. Moreover, there is risk that the index will fall further. Hence, we recommend that investors wait to buy on weakness. If the SET increases, particularly to 1420 or higher, we suggest that investors sell to trim portfolios and hold cash.
Technical stocks: EPG, RS, SAMART(short)
Market direction: The SET began to see buying that supported the index to recover to move in positive territory yesterday after it decresed in the last three days. This morning, there continues to be catalyst from Wall Street's rally of nearly 100 points after the Dow opened lower by over 100 points, pressured by global crude that turned to weaken and ended lower by nearly 3%. To elaborate, the API revealed a higher-than-expected rise in U.S. oil stockpiles last week. Given that, investors wait for the EIA to release U.S. oil inventory again tonight. Meanwhile, the buying that supported U.S. equity markets to turn to end higher came from the Fed Chair's statement which signaled that the Fed would not raise policy rate shortly. As a result, investors were confident that there would be no rate hike at the next FOMC meeting due in late April. In addition, there was buying that supported most Asian stock markets to open up. Although the gain was modest, it does create positive investment sentiment in Thai equity markets. Nonetheless, FSS believes that the SET's upside is quite limited because the Thai main index has considerably rallied lately. What's more, we began to see more selling that pressured the index, particularly when it increased. Hence, we maintain our call for investors to wait to buy on weakness.
Support 1390-1386 , 1382-1378
Resistance 1394-1396 , 1398-1400
Source: fnsyrus.com / settrade.com
