JCI Tuesday Potentially Weakening, Five Stocks Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - The Composite Stock Price Index (JCI) is projected to weaken today, Tuesday 19 November. Phintraco Sekuritas in its research estimates that the JCI will move in the resistance range of 7,250, pivot 7,200, and support 7,050.

Phintraco Sekuritas said, along with the weakening of the JCI on Monday, the Stochastic RSI formed a death cross on the pivot area. This condition is overshadowed by the continued selling pressure which is indicated by the tendency to accumulate net sell foreign investors until Monday

"Thus, be aware of the lower-level of today's bearish target JCI area based on the double-top pattern at 7,050," wrote Phintraco Sekuritas.

Phintraco Sekuritas added that investors anticipate the results of the BI RDG on Wednesday, November 20. Unfortunately, BI is believed to hold the benchmark interest rate at 6 percent, although the Fed cut the benchmark interest rate by 25 bps in early November 2024. This belief is based on the tendency to weaken the Rupiah exchange rate along with the capital outflow trend in the past month.

"The main trigger of this condition is a change of market view towards the Fed's policy direction in 2025 which is believed to be less-aggressive," added Phintraco Sekuritas.

Phintraco Sekuritas said that sentiment from Europe is also believed to not help much. The reason is, the ECB is believed to hold the benchmark interest rate in December 2024 in line with the projected increase in Euro Area inflation in October 2024 due to the increase in natural gas prices.

Phintraco Sekuritas recommends six shares for today, namely MAPI, MAPA, ACES, DSNG, TLKM, and ICBP.