Daily Markets Briefing: STI down 0.69%

Expect muted gains today.

According to OCBC, the rebound on Wall Street overnight could bring some reprieve to the local bourse, but we still expect overall tone to remain somewhat cautious as market enters into “Fed Watch”; this as the Fed is widely expected to hike US interest rates at the end of the two-day meeting starting tonight.

Nevertheless, we note that the STI managed to claw back most of its earlier losses yesterday to close above the key 2800 support, even though the index ended 0.7% lower, OCBC said.

Here’s more from OCBC:

And with the RSI just a tad above the oversold region, we may see a technical rebound; but again, failure to sustain above the key 2850 level could lead to more selling into strength.

As before, we peg the key support at 2800; a breach of this key support would not bode well and the index could slide back to 2740 before finding firmer support.

Above 2850, we peg the next resistance at 2876.