Maintain long positions. The HSIF saw renewed buying interest, adding 233 pts to settle at 29,403 pts. Tracking the overnight regional peers’ risk-on sentiment, the index gapped up 122 pts to open at 29,338 pts. It fell to the day’s low of 29,202 pts, but buying pressure lifted it towards the day-high of 29,460 pts before closing at 29,403 pts. Bullish sentiment continued to be seen in the evening session, where it closed at 29,551 pts after testing the session’s high of 29,606 pts. After moving sideways in the past four sessions, the HSIF managed to print a higher high yesterday, signalling a resumption of the uptrend. As the 20-day SMA line is lifting the index higher, the bulls are eyeing the resistance levels of 29,663 pts and 29,900 pts. Given the risk-on sentiment, we maintain our positive trading bias.

We recommend traders maintain the long positions initiated at 29,230 pts, or the closing level of 2 Feb. To manage risks, the stop-loss is raised to 28,800 pts.

The immediate support revised to 29,100 pts, followed by 28,800 pts. Towards the upside, the immediate resistance is pegged at 27 Jan’s high of 29,663 pts, followed by 29,900 pts.

Source: RHB Securities Research - 10 Feb 2021