Unfortunately market failed to find the strong reversal trend, and was followed a mild bullish channel with the low range, the past bullish channel was more like a sideways channel.
I do not see any big opportunities for investors this week, high volatility will still be a part of the market, volumes may increase but we need to realize about the unsolved issues, pre-budget political statements, misinterpreted governmental agreements, and I see lot more this week to be happen.
Though I was predicting good impacts of president’s visit, but that might neutralized with ongoing situation.
The big change I see is the fresh in coming selling pressure gaining control on buyers, which was not seen in my last forecast.
My pattern indicating me the big breakout this week probably Monday or Tuesday.
Trend is still not strongly established, indicating more of range bond.
Conclusion:
More chances of Bearish Market
To keep the bullish hope market required to close between 7178 – 7202 on Monday
If market follow the current channel then the range will be 7154 – 7354
Recap: KSE-100 of Past week:
Past week market moved in a range of 342 points hitting high of 7434 and low of 7092. Market added 48.13 points compare to the previous week.
Developments:
The significant success to Army operation against militants; the peaceful passing of May-12 in the city; and affirmation of including 12 Pakistani companies into MSCI Barra; Oil prices in international market recovered to its six months high of $59 per barrel this week; Foreign investor injected about five million dollars in the last two consecutive sessions, following MSCI announcement;Negative Impacts: Massive outflow of foreign portfolio investment (USD $11 million); Low turnover; Lack of investor’s confidence; Supreme Court’s decision regarding 20% reduction in POL prices has also kept the local institutions on the sideline.; Net foreign selling is highlighting institutional investors concern on Pakistan law and order situation.
Disclaimer
This report is prepared solely for information and data purposes. The above is not recommendation to buy or sell. 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.
