Daily Market Opinion for 03-Jan-2013

As US “Fiscal Cliff” discussion draws into conclusion yesterday, many cheered and announced that the “Fiscal Cliff” could have been avoided after the Congress voted and pass the bill of the partial plan. Asian market rose strongly upon hearing the news and STI reacted bullishly too. A strong gap up opening was seen in STI; recovering back above 2180 level quickly without resistance. Buyers continue to enter the market during the morning session as fears started to ease as the votes in Congress are being voted. The bullish push lifted STI to as high as 3210 level before some profit taking sets in. Eventually, STI started the year with a strong bullish note as it closes with 34.66pts higher and ended at 3201 level. Can STI maintain this bullish strength today? Or will it be a good opportunity to take profit?

STI closed as ...