Daily Markets Briefing: STI up 0.8%

Today's tone likely to remain muted.

OCBC Investment Research said:

The modest gains on Wall Street overnight and the poor Nikkei start (down 0.6%) are unlikely to provide much inspiration for the local bourse this morning.

As a recap, the STI rallied as much as 1.4% intraday yesterday but started pulling back as it neared the 3070 key support-turned-resistance; by the close, the index was about 0.8% higher.

And with today’s tone likely to remain fairly muted, we could see the index consolidating further around current levels, bounded by the 3000 psychological support and the 3070 key hurdle.

The subsequent base lies at the 2930 key trough with the next obstacle marked at the 3130 support-turned-resistance.