IMF concern over deferring decision on VAT creating some chaos in the market, but local investors are sure about the imposition of VAT.
Market precisely moved between the given levels, at the end market once again tested crucial level and closed around it.
Blue chip companies still not performing, as the LOTPTA contributed 32.83% of the total volume, than TRG having 15.29% and the AHSL, JSCL together contributed 7.20% of the total volume, this accurately reflects the least interest of investors in Major companies of KSE.
Traders are still not clear with the understanding of budget announcement; most of the traders feel themselves in Cul-de-sac.
That’s true it is not appropriate to justify the budget understanding in few sessions, it may take couple of sessions to understand the impact of budget announcements for investors.
Today foreigners were silent, on the other hand mutual funds continues their buying with the same enthusiasm, declining foreign interest threatening local investors and signaling them to stay calm unless see any decisive move.
Future Outlook:
Nothing surprising today, from the beginning of the session market was under depression, and wasn’t able to cross the given resistance, but traded all day accurately in given levels and provided the opportunity for intraday traders for daring entries.
Now from here we forecast the early bounce followed by the supporting level, and if the index trades some early hours in positive notes, that will bring more traders in to the ring. Currently market closed precisely around crucial level, so breaking and trading below this level will push index further down to the next support level.
For early birds it is recommended to get in with the daring entry placing the same stop loss (Below 9,683 – 9,671)
Market is about to make a decisive move now, it may be in next session or at the most Friday, the weekly closing may give us better indication for the trend, currently trend is not established, possibility of volatile movement is still exist.
So it is required to follow the level, be firm on your stop loss, and check the volatility prior to placing your stop loss.
Preventing loss is also a success in capital markets, so try securing your capital investment in current scenario and gear up for target buying for great returns.
That’s why we recommend TRADING ON LEVELS
Key Levels
10,010
9,996
9,944 - 9,924
9,882
9,827 - 9,801
9,761
9,683 - 9,676
9,608
9,567
9,537
9,477
Source: NCCPL
Foreign Investors Activities
9th June, 2010
Net Sell USD $ 418,152
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.
