Daily Markets Briefing: STI down 0.44%

Expect muted gains today.

According to OCBC, the modest rebound on Wall Street overnight could provide some relief to the local sentiment; the Nikkei is up 0.7% in early trade.

While the STI will make an attempt to re-take the initial 2850 resistance, the ability to sustain itself above that remains in doubt, OCBC said.

Here’s more from OCBC:

Instead, we could see selling into strength emerging towards the end of the day as investors lighten their positions ahead of the weekend.

As before, we still expect more convincing bargain hunting interest to only surface closer to 2800.

On the upside, we peg the next resistance at 2876, ahead of the psychological 2900 barrier; on the downside, the first support is likely to be around 2829 before the key 2800 level.