Last Friday's market: The SET continued to rally sharply last Friday thanks probably to speculative buying to bet on referendum result over the weekend where investors expected Thai politics to go ahead in line with the road map. Moreover, there was buying to bet on U.S. nonfarm payrolls as well.
Today's outlook: We expect the SET the see additional support in the morning after both U.S. and European stock markets were able to end up quite sharply by over 1%, positively responding to the British government's stimulus and U.S. non-farm payrolls that surged more than expected in July. Moreover, there is domestic catalyst from progress over Thai politics after the referendum on the draft charter went well over the weekend. However, global crude remained quite volatile. In Asia, equity markets edged up quite limitedly. For these reasons, FSS maintains our call for investors to remain cautious over selling to lock in profit as it will pressure the SET to be volatile and retreat from time to time.
Strategy: FSS expects the SET to be volatile after the index has rallied quite sharply lately. Hence, we recommend that investors wait to buy on weakness.
Support: 1515-1512 , 1507-1500
Resistance: 1520-1522 , 1524-1526
Source: fnsyrus.com / settrade.com
