Strategy: The SET continued to stabilize well in the last 2-3 days after the index has quickly decreased in the last round. Given that, we expect it to rebound to move in positive territory. However, upside should be quite limited. Moreover, there is risk that the SET will fall again. Hence, we recommend that investors do not buy into strength and wait to accumulate on weakness.
Technical stocks: BLAND, BR, BCP(buy back)
Market direction: Yesterday, althouhg the SET continued to move in negative territory, it stabilized well, moving within the range seen since last week before the long holiday. This implies buying that continued to support the market. This morning, there is support from positive investment sentiment abroad after global crude turned to increase by nearly 3% after there was report about attacks on Nigerian oil field, which cut the country's oil production to its 22-year low. Last night, Wall Street ended up by over 1% supported by U.S. wholesale inventory report which increased in March. In Europe, most equity markets also closed up thanks to report that the euro zone Finance Ministry started a new negotiation with Greece after the Greek parliament had approved a new round of austerity programs. Given that, most Asian stock markets continued to open higher this morning. FSS expects this to help support the SET to see some rebound after the index has decreased since late last month. Nonetheless, Asian stock markets' gain was still limited. In addition, the current supports are highly uncertain. Hence, we believe that the SET's upside is limited. What's more, investors must continue to watch out for selling that will pressure the index to turn to decrease.
Support 1387-1382, 1378-1374
Resistance 1394-1397 , 1400-1405
Source: fnsyrus.com / settrade.com
