KSE100 Wrap up
As
expected depression continued in PSX today, with the start of session bears
noticed with efforts to drag index down, their first attempt tested given level
of 42,441 and then upon trading below this level helped bears to perform all
day, at the end index closed with the loss of 295points, volumes sliding down
with the points, today KSE100 further lost 22.34% comparing to earlier session,
low volumes helped index to hold and rejected bigger slide.
Foreign
funds remained with selling whereas both local funds and investors noticed with
limited inflows as per NCCPL website.
Analyst
said equities extended their decline ahead of the Quarterly MSCI Tracker Funds’
re-balancing on Friday.
“Moreover,
the scheduled termination of future contracts on Friday supplemented the
selling pressure as investors opted to liquidate their positions in the August
contracts,” (Source Express Tribune)
“The
decline was mainly led by cements, Cherat Cement closed on its lower circuit
after announcing lower than expected FY18 result, EPS (Rs12.07) with dividend
of Rs4
Technical View
What
is happening in PSX is really scary for short term traders and especially those
who only like to go LONG, limited move with thin volumes kept daily traders in
trouble, situation favoring bears for continuing efforts, index tested 42,175 –
42,155 levels as low, some support noticed there but it is not enough to help
much because of the low momentum and weakness in trend, stay alert I see more
selling pressure in coming session by trading below 42,175 – 42,155 and sliding
from here is going to chase 41,735 as an utmost target of the day, before
achieving this target index having couple of good supports too, traders
encourage for analyzing power of bears around all given supports, because
breaking each given support will add aggression in bears and that will help you
in trailing your stop losses.
Do
not see much for bulls in current scenario, so I like to warn traders to stay
safe from a trap, if index notice with any hyper move try planning selling on
strength, the first major resistance is at 42,441 and then around 42,595, both
levels are good for going SHORTS.
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.
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