Daily Market Opinion for 02-Jan-2013

STI ended the year with a retracement movement as fears of US’s “Fiscal Cliff” talk not coming into any conclusion. STI opened with a gap down, breaking the immediate support of 3180 immediately. Efforts to recover above 3180 level during the day were not fruitful as market participants preferred to exit the market; hitting only as high as 3176 level. Selling pressure was seen throughout the day forcing STI to hit as low as 3160 level. Due to half day trading, trading activity continues to be low. Eventually, STI ended the year at 3167 level with 24.72pts lower. On Monday night, DJI rebounded strongly as part of the “Fiscal Cliff” plan passed. DJI was seen rebounding 166.03pts to end the year. Will STI retrace further on the first day of the year? Or will STI start the year with a positive bang?

STI ...