KUALA LUMPUR (Dec 14): The FBM KLCI is expected to trade sideways within a tight band between 1,640 and 1,650 points today in line with the fall at most global markets last Friday.

Stock markets worldwide tumbled on Friday, Brent crude oil prices fell to seven-year lows and China's yuan currency sank on risk aversion ahead of a widely anticipated US interest rate increase next week and worries over economic growth, according to Reuters.

The benchmark US S&P 500 sank nearly 2%, while crude prices plunged further on a persistent global oversupply. The International Energy Agency said it sees the glut worsening in 2016 as demand slows and the Organization of the Petroleum Exporting Countries shows no signs of slowing production as it fights for market share, it said.

AllianceDBS Research in its evening edition last Friday said that dampened by the down close in the preceding day, the FBM KLCI had on Dec 11 broken the 1,645 support to settle at the day's low of 1,640.14 in the last few minutes selective selling of selective blue chips (down 8.51 points or 0.52%).

"In the broader market, losers outnumbered gainers with 477 stocks ending lower and 306 stocks finishing higher. That gave a market breadth of 0.64 indicating the bears were in control," it said.

AllianceDBS Research said the market continued to be in a losing streak with sellers still in control of the game play.

"There was an attempt by certain market participants to keep the benchmark index above the 1,650 level on the opening bell, but non-follow through buying interest in the area of 1,650 gave a chance to aggressive sellers to take control.

"This pushed the benchmark index down below the 1,645 support to a low of 1,640.14.

"Following the down close on Dec 11, the market is likely to come under selling pressure again with immediate support seen at 1,629," it said.

The research house said a fall below 1,629 could send the benchmark index down to the subsequent support at 1,617.

It said the overhead resistance was pegged at 1,645, adding that, indicator wise, the MACD was below the nine-day moving average line.

"The analysis of overall market action on Dec 11 revealed that buying power was weaker than selling pressure.

"As such, the FBM KLCI would likely trade below the 1,640.14 level on Dec 14," said AllianceDBS Research.