Market Outlook: DA Market Securities

05 Mar

Amid uncharted territory, next major resistance is pegged at the low end of 2015 target range of 8,000 and 8,500. Meanwhile, initial major support is at 7485 (Fib and 50-day).

Not discounting possible further highs, we note a more cautious stance amid rife rotation of among stocks as investors profit take on stocks that are fairly valued and seek for more attractive values in the market as FY2014 earnings results trickle down through early March.

While RSI rebounding above neutral, MAC/D is in a bearish crossover further indicating a downward bias to possible consolidation/correction.

Short-term investors may take profit as stocks reach fair-value targets or overbought territory, ahead of a post-earnings period that may be characterised by a lack of leads.

Individual stocks picks can present opportunities amid rotational nature of the market.

Strategy: Note also that 2015 is anticipated to be marked with volatility calling for a more nimble investor with a short to medium-term investment horizon.

Market swings may stem particularly from external factors including possible tightening in the US (interest rate hike by mid-year) and concerns about deflation in the eurozone and economic slowdown in China.

On the local front, we may see election-related news to become more market relevant as we enter the thick of the campaign season and monitor poll results.

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Posted by on March 5, 2015 in Market Outlook, Stock Market


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