Hopes remained in Karachi Stock Exchange, despite of fake allegation from USA to support incoming elections.
Despite of statements from different analysts about the impact of global crisis on Karachi stock Exchange, the KSE-100 consecutively witnessed with five bullish weeks, though the volumes were threatening only last three sessions recorded some exciting volumes but the participation wasn’t welcomed as last two sessions forced index to slide down.
The efforts from president for holding meeting with stock members is highly appreciated and we hope the FM Sind will take necessary action to ease investors for investing in new projects as President already admitted the crisis of government funding in new projects.
It is time to make new attractive strategies for investors after global sell-off, and we really need to learn from earlier global crash, when few markets responded amazingly after booking heavy losses. Our markets got the potential to offer the quick returns comparing to the European and US markets in present scenario, only need to clean up a little mess for possible foreign inflows.
The past excited week close with depressive sessions but added 51% more volumes WoW basis, well neither the excitement was justified nor the selling was logical, but in result index manages to close in positive notes and continued the upward move on weekly basis. So far in this month foreign investors found with net buying despite of heaving selling from local institutions and some panic selling from retail investors.
Optimism noticed in investor with expectation of bigger cut in discount rate in upcoming monetary policy. Exciting inflation figures more confusing investors in current scenario.
New wave of pressure from Whitehouse regarding Pakistani links with haqqani network is the serious threat for coming days, furthermore development on IMF front more politicizes rather unveiling the facts, on the other hand declining trend noticed in sales of few sectors. Devaluation of Pak.Rupee against US dollar and downslide in gold further fearing investors, as the capital markets are more volatile these days focusing on global economic and political crisis.
KSE: Exhaustive efforts noticed on daily charts from bulls since august 29th despite of multiple reasons for having fear in investors, though we had couple of corrective sessions but bulls recorded continues gains in last five weeks, now in past week wave of excitement also noticed but bulls failed to sustain in last two sessions. Development on Pak-US relationship and confused governance are the major and primary threats for coming sessions.
Trend was about to get stable but last two sessions put it back where it was on daily charts whereas the weekly charts still not appreciating any exciting moves in coming session. Oscillators are already exhausted and moving averages indicating supporting spots on charts in case of further pressure.
11,625 – 11,606 become crucial for bulls, as bulls really need to work hard from the very first hour of the session, reaction of bulls on first two given resistances are really important for survival. Hope still not over little more efforts from stakeholders can energize the bulls in market, and to do that bulls need to began above the first given resistance and not to trade below the given crucial level anytime in coming week.
11,446 – 11,434 the most vital support in current scenario, breaking and trading below this level will be the best time to exit, whereas the daring buyers are recommended to buy on given supports with placing stop loss below the same level for short term entries. We do not recommend short term traders to expect big targets; profit taking on given resistances will be the secure strategy in present situation.
We still firm on earlier given statement about long term investors as long as KSE-100 comfortably moving under the channel (mentioned in above chart), as few scrips still attracting investors for long term holding with their fair corporate performances.
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This commentary, key levels and views are not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. We accept no liability whatsoever for any loss arising from any use of these levels. However the author DOES NOT GUARANTEES the accuracy of information provided on this report and is NOT RESPONSIBLE FOR ANY ERRORS AND/OR OMISSIONS.