Limited activities witnessed from foreign and local institutions whereas the local investors were found in panic selling.
Lack of clarity and tax treatment is the major cause of this steep fall in index. And it may continue until the proper understanding of the relevant measures.
Future Outlook:
The week began with the panic selling signaling more pressure in coming days, as stated earlier no sign of upside movement found and all we see is the pressure and now the move today ensuring the further sluggish move.
After the sharp decline we may see some recovery in the market because of few scrips from Oil sector, but the bouncing move will not sustain, it will only provide opportunity for further offloading.
Market must not break 9,189 today, breaking this level will elevate the selling pressure in investors, trading and closing above 9,375 will bring some fresh buying. Currently Market is out of its main channel, and now market will find new channel for its future move.
Time is already over for exiting from the market, now the time is for entering in the market with new planned portfolios with cheaper buying to get high return in short period of time.
The volatile movement of the market will remain until the budget gets approved from assembly; it is recommended to sort the scrip for your fresh portfolio.
My sincere advice for investors to please focus on future vision rather focusing on short term possibilities, the current index movement can only benefit the intraday traders.
That’s why we recommend TRADING ON LEVELS
Key Levels
9,504
9,443
9,377 – 9,359
9,270
9,189
9,155 - 9,149
9,111
9,045
8,986
8,862
Source: NCCPL
Foreign Investors Activities
14thJune, 2010
Net SellUSD $ 244,380
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.
