Daily Markets Briefing: STI up 1.67%

Expect modest gains today.

According to OCBC, the pullback on Wall Street overnight could inspire the similar profit-taking in the local bourse today; the Nikkei is down 1.2% in early trade.

While the STI managed to conquer the initial 2650 hurdle, it looks unlikely that this level will hold as an immediate support; instead, we should see the index slipping back to 2600.

Here’s more from OCBC:

For now, we expect 2600 to hold, and should see another attempt to push towards 2700 in the coming sessions.

However, should the index fail to clear 2700 or come close to testing it, we could see selling into strength resuming as the overall downtrend remains intact for now.

Below 2600, we peg the next support at 2521.