KSE Morning Call For Wednesday 2nd June 2010

Fear is still roaming all over for Investors, as we do not see any analyst thinking positively about the budget and its aftermath. As per our survey for today’s move, most of the traders call it the artificial move, based on specific shares, other than these selective picks all other scrips found in heavy selling pressure.
Even the winner of today OGDC was not able to close around its high.

Figures not reflecting net buying from foreign and local institutions, mutual funds were in selling today, quick recovery tempted daily traders and local investors to get on to the boat. Under the prevailing circumstances investors not feeling comfortable to expand the portfolios, they may sell more in coming sessions.

Learn how to secure your investment by TRADING ON LEVELS

Market Expectation:
Market supported strongly to the daily traders and traders who understand how to follow the trend, in the beginning when market lost 163 points, daring entries witnessed and resulted in quick returns. As we said earlier bears got the ability to slide market further down and they did, given ray of hope for early birds was smashed in the beginning when market breaks 9,315.

Now once again the optimistic traders can trust for 9,307, but don’t forget to place your stop loss right below the same level. Breaking 9,231 – 9,220 will be the right time to exit. It is not right to expect too much from the market right now, so expect some strong resistance around 9,383 and 9,368, breaking this level may bring some buyers back into the ring. Let me tell you for Bulls to Breath it is very much required to trade and close above 9,343.

Volatility with low volumes become the normal routine of the market, I am sure everybody noticed that the volatile scrips spreading panic in the market. So stay out of panic and focus on your target buying. Tell you 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 9,519
High 9,340
Low 9,164
Close 9,294
Total Move 176
Lost 32.24
% Lost 0.35%

Updated Levels
9,680
9,602
9,537
9,485
9,456
9,417
9,383 – 9,368
9,307
9,231 – 9,220
9,168
8,989
8,799
8,536


Foreign Investors Activities, 1st June, 2010: Net Sell USD $ 19,152 (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.