Morning Dew - 21 August 2013

Key Points

• JCI remains under pressure on Tuesday as the index sliced through several layers of support line and hit the low of the day at 4062.30. As we lost 4252, the next Fibo support comes at 4016, just above the key psychological level of 4k. While the outlook stays grim, the bounce just before the market closed suggests that the selling pressure has slowed and we may actually see the key 4k level holding up pretty well on Wednesday. Upside, the prior support-turned-resistance at 4373 is still seen to cap any recovery attempts.
• BBRI fell off the recommendation list after the stock plummeted to hit the low at 6550, taking out the stop level below 6800 easily. Now, only four stocks are on the list and three are in the red while IMAS has been hovering around the breakeven level at the moment. Meanwhile, WSKT and ACES are struggling to dodge being crushed below the stop level. Four stocks are added to the list: ARNA, MDLN, PGAS and ULTJ.
• US stocks ended up mixed as the Dow fell a bit while the S&P 500 index edged higher. The market will wait for the FOMC minutes to be released today to judge whether the Fed is geared up for a stimulus reduction next month. It is however, likely to start reducing the stimulus amount, but at gradual pace. JCI outlook is to stay vulnerable on Wednesday but with a decent chance of a bounce.

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