Daily Market Opinion for 24-Oct-2014

Another strong rally happened for STI yesterday as it attempted to catch up with the bullish sentiment due to the Deepavali holiday. The day opened with a strong gap up which immediately broke the resistance at 3220 level. This breakout became sustainable during the day as STI managed to continue to trade higher gradually during the day. There were little selling pressure during the day and hence, a high of 3238 was formed. It is only when it is coming close to the closing hours that profit takers are seen. Therefore, STI ended the day at 3236.5 level with a gain of 33.76pts. Last night, DJI went up by 216.58pts again. Will STI be able to continue to show gains today? Or will profit takers start to enter the market?

STI had indeed tested 3220 resistance level and even broke it yesterday. ...