Strategy: The SET continued to rally more than expected. However, the quick increase without fresh catalyst should trigger profit taking, which will pressure the index in the end. For this reason, FSS recommends that investors do not buy into strength. On the contrary, we view that investors should wait to buy on weakness. Nonetheless, since we expect the SET to fall in order to move up going forward, we suggest that investors hold after they have placed their bet.
Technical stocks: SGP, PIMO, GL(buy back)
Market direction: The SET continued to rally for another day thanks to buying in energy shares because global crude recovered once again after it tumbled the other day due to concern over the meeting of oil producing countries which did not make any progress. Moreover, there was buying in SCC shares that had helped support the market rally. This morning, most Asian equity markets were able to continue to open higher thanks to the positive investment sentiment in Europe after most of them ended up quite strongly last night owing to support from the rebound in oil price and ZEW's report which indicated that Germany economic confidence index surged more than expected in April. In the U.S., although Wall Street closed up modestly, supported by a rise in global oil price and strong corporate earnings results, there continued to be pressure from unclear economic data. Given that, there is risk that U.S. stock markets will be more volatile going forward. Finally,
Asian equity markets' rise this morning was quite limited and volatile. If there is no fresh catalyst to support, FSS expects them to later fall, which will pressure the SET to decrease shortly, especially after the Thai main index has sharply rallied lately. For this reason, we recommend that investors wait to buy on weakness.
Support 1413-1407, 1402-1398
Resistance 1420-1426 , 1430-1432
Source: fnsyrus.com / settrade.com
