Strategy: The SET has decreased by nearly 50 points in the last two weeks before the long holidays. Hence, there is prospect that the index will rebound to positive territory at this time after global crude recovered. However, FSS continues to believe that the market will increase within narrow range. Moreover, there is risk that there will be selling that pressures the index to fall to 1360 or lower going forward. As a result, we recommend that investors only buy on weakness and hold, waiting for a new round of rallies.
Technical stocks: TU, TNP, IVL(buy back)
Market direction: The SET turned to fall again before the long holiday late last week. While Thailand was on holiday, most international markets were volatile, moving within narrow range, without clear direction. Although there continued to be support from buying due to an expectation that the Fed would not increase policy rate any time soon, there was pressure from weak economic data in key economies. Specifically, U.S. non-farm payrolls increased lower than expected. In addition, the gain is the smallest in seven months. Given that, FSS expects the SET to continue to move lower. This morning, markets might see support from speculative buying that helps it to increase after Wall Street turned to end up last Friday, while most Asian equity markets were steady, while Thailand was on holiday. However, we expect upside to be quite limited because there is no fresh catalyst. What's more, most Asian stock markets opened only slightly up this morning. For this reason, we maintain our call for investors to wait and accumulate on weakness.
Support 1386-1384, 1380-1375
Resistance 1393-1395 , 1398-1400
Source: fnsyrus.com / settrade.com
