9,800 still scary for bulls, as once again it is noticed whenever bulls dare to cross it; some hidden bears get-in to sabotage their efforts.
FIPI alone contributed USD$21,569,573 in just this week.But today amazingly foreign investors found with least interest, that’s true they were not in selling but comparing the last few sessions today their net buying was only USD$ 630,170. Now question arise who was behind the OGDC buying specially in second session.
Finance minister scheduled to visit KSE on Monday to discuss the CGT related concerns of brokers and investors, we expect it may help having a clear picture of the CGT implications, investor will focus his visit for their concerns, clarity on implications can strengthen the investors confidence, to wipe off the CGT from the scene I guess it is good time to launch the leverage product as it is in pipeline for long time.
Future Outlook:
If you look at the market pattern of intraday charts of the past week, you will find the similarity, as market began with the sharp move and then pressure force down the index and at the end market manage to gain some points. And this all happened with low volumes.
As I said earlier the gained points are nothing just to provide cushion for selling pressure. FIPI net buy on last day of the week was quite amazing, and it is also noticed even the local funds were found with limited participation and recorded net selling.
Technically market gained some momentum, despite of 5 green candles the trend still not indicating and bullish move, and the oscillators are exhausted.
Do not get depressed folks! Whatever I said above is short term; the positive thing is market manages to sustain its weight, so index does not have much room to go down now. The second positive thing is market already absorbs most of the economic threats in last couple of weeks, so the near term future is bright as I was keep saying to focus on future vision of KSE.
Expect some volatility for Monday; some 50 points are really resisting and important for market (b/w 9,821-9,871) to sustain the current move, now we only requires volumes, as the limit is about to exhaust.
9,768 – 9,757is a vital support, breaking this level will elevate the pressure; trailing exit reflecting the gained weight of the market.
That’s why we recommend TRADING ON LEVELS
Key Levels
10,022 – 10,006
9,941 – 9,929
9,871
9,839 – 9,821
9,768 – 9,757
9,706 – 9,687
9,655 – 9,643
9,568 – 9,555
9,504
Source: NCCPL
Foreign Investors Activities
21st to 25th June, 2010
Net Buy USD $ 21,569,573
Disclaimer: This commentary, news or key levels are not a recommendation to buy or sell, but rather a guideline to interpret 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.
