Yesterday's market: The SET continued to increase in the morning session, in line with international markets which saw support from the expectation that the Fed would put off interest rate hike for now. However, there was selling that pressured the index to fall in the afternoon after it had increased considerably without any fresh catalyst.
Today's outlook: We expect the SET to continue to fall. Although Asian equity markets continued to open up this morning, in line with most of their European peers which ended higher by over 1% thanks to support from global crude which continued to surge for the second straight day. Nonetheless, Wall Street began to see selling pressure before its close, decreasing its gain from over 80 points to less than 18 points, after there was selling in banks and health shares. Given that, Asian equity markets remained volatile this morning. Moreover, we saw some retreated prior the SET's open.
Strategy: With all mentioned above, FSS expects the SET to decrease to build up base before it turns to rally to our index target of 1500 thanks to the abundant liquidity in the market. Moreover, we recommend that investors continue to buy on weakness and then hold, waiting for a new round of rallies.
Support 1440-1436, 1430-1426
Resistance 1444-1446 , 1450-1452
Source: fnsyrus.com / settrade.com
