Daily Markets Briefing: STI up 1%

Today's tone likely to turn downside bias.

OCBC Investment Research said:

The pullback on Wall Street overnight and the weak Nikkei start (down 0.2% now) could keep the local sentiment cautious this morning.

Despite a 1% gain by the STI yesterday, the rise was on the back of muted trading activity; as such, the current near-term recovery might not be sustainable.

And with today’s tone likely to turn more downside bias, we could see the index pulling back in the direction of the 3060 immediate support (key trough).

Below that, the subsequent base lies at the 3000 key psychological support. On the upside, the immediate key resistance is now pegged 3200 psychological resistance, followed by the 3230 support-turned-resistance.