Strategy: The SET rebounded. However, FSS continues to believe that upside will be quite limited at this time after the market has sharply rallied lately, while there is no fresh catalyst to provide support. Moreover, there is risk that the index will continue to decrease. For this reason, we recommend that investors wait to buy on weakness. However, we also believe that a loss in the SET will be there just to be followed by a rally afterwards. Hence, after bets are placed, we suggest that investors hold, waiting for a new round of rallies.
Technical stocks: VIBHA, CSS, TPIPL(short)
Market direction: Yesterday, the SET rebounded to move in positive territory. In particular, there was buying in blue chip stocks in the afternoon, i.e. banks and energy shares, which made it possible for the index to turn to move near 1420 thanks probably to speculation on Fed meeting results that are due out tonight. In addition, global crude also recovered to the point that WTI was able to end by over 3% after there was report that U.S. oil rigs decreased last week. That supported Wall Street to end slightly higher after its narrow movement nearly all day. However, investors continued to lack confidence about global economy. As a result, the gain was quite limited. Moreover, Asian stock markets continued to open in negative territory this morning. On the local front, both international and domestic institutions' buying eased. With that, FSS expects the SET's gain to be brief. Furthermore, investors need to watch out for a fall. Tonight (April 27), results from FOMC meeting might not help support much. Hence, we maintain our call for investors to buy on weakness.
Support 1415-1410, 1405-1397
Resistance 1420-1422 , 1425-1427
Source: fnsyrus.com / settrade.com
