KSE-100 for the Week of 19th 23rd Oct, 2009

KSE-100 for the Week of 19th 23rd Oct, 2009

By

Khalid Saifuddin

Friday 17th 2009

Hi Folks:

To me enough is enough, market resisting on highs for quite long time, with the intraday corrections market try to support the bulls for next run. But now I can see too many signs of going into regular correction.

Friday it has been observed the biggest foreign selling, if you compare with the last couple of months data, the Waziristan operation can also be reason for investors to minimize their positions, country is on high alerts these days, the confidence of common men is shacked because of the explosions and shooting events, though the Kerry-Lugar bill will be the greatest supporter for the Bulls.

Trading and closing above 10,005 on Monday can put bulls back into ring, and closing below 9815 may bring pressure to the market. Now it really makes sense to focus on long term holdings but investor must be very specific and choose the right time for buy.

Caution: Declining Global interest recorded on Friday

Key Levels

10150

10027

9945

9811

9608

9520

Recap Last Week:

Market performed in both directions with pressures, traders were really interested to get into the market, but couple of events makes them shocked and later that also resulted in some outflow of the foreign investment. Market still having opportunity of some long term buy, the investors must fix their targets.

Last week analysis: I was convinced that the volatility and intraday correction will make market stabilize and it did. Though market still in fragile zone but we got some positive development, the ongoing debate on Kerry-Lugar will be gone very soon like the NRO and Musharaf trail.

The incoming Leverage product will give more strength to the market, and we all noticed the pouring dollars are already getting high.

I am very much optimistic about the market now, though it will take little correction but eventually the market will hit the goal.

Trading above 9865 will energize the market and trading or closing below 9505 may bring pressure to the market. Now it makes sense to focus on long term holdings but investor must be very specific and choose the right time for buy.

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Disclaimer: This commentary is 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.