Strategy: FSS expects the SET to continue to move sideways down. Moreover, the index might rebound. With that, we maintain our call for investors to slowly accumulate on weakness. Specifically, we expect the SET to fall to 1360 or lower. However, we believe the market will fall only for a few weeks before it turns to rally to a new high above 1432. Hence, after bets are placed, we suggest that investors hold, waiting for a new round of rebounds.
Technical stocks: SIRI, BLA, GPSC(short)
Market direction: The SET only inched up yesterday's morning before it resumed its fall due to lack of fresh catalyst. Meanwhile, global crude continued to weaken owing to concern over supply glut after there was report that countries in the Middle East had increased their production and there was pressure from the anticipation that U.S. oil inventory will rise again. As a result, both U.S. and European stock markets tumbled quite sharply overnight. Furthermore, China's and U.K.'s manufacturing PMI came in weak, triggering investor concern over global economic slowdown and pressuring most Asian stock markets to open lower. In this regard, FSS expects the SET to see pressure that will drive it to move sideways down. What's more, Thai equity markets will be closed during a long holiday starting tomorrow (May 5) until the end of this week, while most foreign markets are open. This should result in selling to reduce risk from downside risks that pressure the market at this time. For this reason, we recommend that investors wait to buy on weakness.
Support 1394-1390, 1386-1384, 1380-1375
Resistance 1400-1405 , 1408-1412
Source: fnsyrus.com / settrade.com
