KSE Morning Call For Thursday 3rd June 2010

The current move is the continuation of earlier recovery from the new low. This is quite amazing that the investors disregarded the budget and its aftermath, as for last couple of sessions that was the major concern for investors. It is required to analyze the sectors which get more impact of the in coming budget, as of
today’s move many of the sideliners were confused for entry.

Banks, Service industry along with the manufacturing sector may get affected with the new taxes, as per senior analyst.

Learn how to secure your investment by TRADING ON LEVELS


Market Expectation:
The previous support and quick recovery pushed hard resulting in amazing closing. Investors were excited of incoming leverage product disregarding all existing threats. Market breaks most of the level which decreases the previous selling pressure, the current closing get market back into the
channel, now as long as market is trading over and closing over 9,456 the bulls will have room to grow.

I see early resistance around 9,537 – 9524, once crossing this level market will gain further positive points for today. Once again exit place trailed around 9,372. For daily traders it is still not recommended to hold right in front of budget, as some depressive moves expected with high volatility.

I was keep saying for last few sessions that market is becoming the buying paradise for fresh buyers and for those who understand their targets for buy and sell.

That’s why we recommend TRADING ON LEVELS

Daily Candle
Open 9,311
High 9,528
Low 9,273
Close 9,499
Total Move 176
Gain 204.88
% Gain 2.20%

Updated Levels
9,882
9,761
9,680
9,602
9,537 – 9,524
9,485
9,456
9,417
9,383 – 9,368
9,310
9,231 – 9,220
9,168
8,989


Foreign Investors Activities, 1st June, 2010: Net Buy USD $ 561,625 (Source: NCCPL)

Disclaimer:
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.