Strategy:
Although the SET bounced back to positive territory yesterday, the index moved up and down within the range seen in the past. Moreover, the main support was easing of the downside risk in the ICT sector without any fresh catalyst. Given that, FSS expects the SET's upside to be limited. In addition, investors need to remain cautious over selling that will pressure the index to fall again. In this regard, we expect the SET to retreat to 1360 or lower, which will then serve as opportunity to buy. For this reason, we recommend that
investors wait to buy on weakness.
investors wait to buy on weakness.
Technical stocks: BEAUTY, WICE, ROBINS(short)
Market direction:
Yesterday, the SET saw support in the afternoon, particularly from the ICT and banking sectors, after investors were certain that JAS did not pay for its license, which would lead to a future auction. Moreover, global crude steadied at its YTD peak, making it possible for energy shares to continue to rise. However, the SET's gain was still within the range seen since early March because investors wanted to see when the new auction would take place and how, while the catalyst that supported global crude was not strong. On the international front, although Wall Street continued to end higher last night for the seventh straight day, they were volatile, decreased intraday, and increased at a slower pace. In Asia, most equity markets opened modestly up this morning, while some were volatile and retreated. Given that, FSS expects the SET's gain to be limited.
Furthermore, investors should remain cautious over selling that will pressure the index to decrease as we have anticipated. However, after such fall, there is prospect that the SET will climb going forward. For this reason, we recommend that investors wait to buy on weakness.
Support 1392-1388 , 1385-1383
Resistance 1396-1398 , 1402-1407
Source: fnsyrus.com / settrade.com
