Investment Daily

类型：投资策略机构：凯基证券有限公司研究员：凯基证券研究所日期：2014-04-01

The Hang Seng Index is expected to trade at 21,900 to 22,200today

    Hong Kong stocks opened 96 points higher on Friday, the March future expiry date,gains were enlarged afterwards. Thanks to the continuous strength of mainlandsector. Hang Seng index closed 231 points higher to 22,066 while H share index alsorose 128 points to 10,002. Beijing Water(0371) net profit rose 44% yoy, share priceadded 7.5%. Although reported result just in line with expectation, ICBC(1398.HK)rose 2.2%. Besides, impacted by accounting probe rumors, Honworld(2226.HK)share price plunged in the previous trading days, but sharply rebounded 25.5% onFriday.

    Economic data including personal income, personal spending and University ofMichigan consumer sentiment index released last Friday was all better thanexpectation. US stock rose last Friday with major index once rose near 1%.

    However, profit taking pressure in late session emerged. The Dow and the Nasdaqclosed 59 points (to 16,323) and 5 points (to 4,156) higher respectively. Lookingahead, investors will eye on major economic data especially US non-farm payroll onFriday. Besides, Europe Central Bank will hold interest rate meeting on Thursdaywhich is also market focus.

    Thanks to the rally on mainland banking sector, the Hang Seng Index rebounded to22,000 level. However, internet and other economic plays share price fell, indicatingthat the rally is mainly driven by fund switching. HSI major support is 50 DaySMA(22,190).

    Technical Analysis

    Hang Seng Index closed with white candle on last Friday, Technically, market brokeresistance at 22,000, together with MACD bullish gap expanding, showing thatmomentum was stable. The first resistance would be 50DMA (22,190), while nextresistance would be 250DMA (22,416). For support, the first support would be20DMA (21,972), while next support would see at 10DMA (21,661).