Technical Forecast for 2nd Week of June, 2009 for KSE-100
By Khalid Saifuddin
June, 7th , 2009 4:00 pm
Market is either a daring adventure, or nothing.So Expect the BULLISH trend nowOpportunities do not come to those who wait; they are captured by those who attack. Off course this is the time to buy most of the selected script because the range of stop loss here is very low and the target journey is long enough to cover at least one month return in few sessions
Trust me the Bullish trend is about to begin, we are only carrying few worries which are the pre budget rumors. Do not panic if you see 50 negative points on Monday.
7024 – 7288 will be the comfort zone for the market in current scenario. Closing above 7180 will take the market into new channel and strengthening the bullish sentiments.
Accurate interpretation of Budget and breaking 7285 will be the strongest rally for the bulls in future. For now most of the issues are going into the favor of the market, the pre budget recommendations, the foreign delegation meetings, the new accords and the release of pending installments.
By looking at the Friday volume we can expect the increasing volume in this week, which is very much related to the foreign/fund buying in this week
Negative Expectation:along with all these bullish hopes we do have few negative issues in pipeline, such as the last week decline of capitalization by 5.1%, we lost USD$ 11,907,250 from foreign investor’s portfolio.
This was the continuous sale in last three days of the week generating fear in local investor (only Friday we lost USD$ 8,260,725)
Foreign Investment Portfolio
Source: NCCPL
Gross Buy Rs. 3,092,207,867
Gross Sell Rs. 4,047,860,860
Net Buy (Sell) Rs. -955,652,993
Net Buy (Sell) in USD$ -11,901,034)
Key Levels for the marketResistance
7170-7175
7094-7105
7042-7050
7023
6975
Support
6841-6850
6702-6719
6618
6274
6036
Recommendations: I strongly recommend buy in most of the scripts and if we experience few negative points on Monday we must add more to over portfolio, BUT breaking 6830-6841 will be the last hope andexit point from the market.
JSCL: BEARISH – Uneven move expected
All I can say is buy and place the stop loss of Friday low, short is more appropriate but the stop loss is little far up to 25.25
MCB: BEARISH – No recommendations
As indicated earlier that if it crosses the 155.79, trader must get into short now it’s been proved.
DGKC: BULLISHKey Levels
25.6
25.05
24.55
24.35
23.82
22.65
21.75
Keep on buying, add more on dips. Any uncertain decline in market can only affect the script. 21.75 is the last resort of DGKC
ATRL: BULLISH
Key Levels
124.3
123.25
122.25
121.18
119.28
117.05
116
ATRL is coming back to its bullish cycle and trading above 123.45 and trading around this range will boost the rally towards its higher resistances.
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Recap: KSE-100 for Past week
Last week I mentioned that if market closed about Monday closing above 7287 will continue the bullish zone, unfortunately it won’t happen and later market gets out from its mild bullish channel to steady bearish channel.
I recommended traders to keep buying on support levels and I am sure whoever did that will get amazing return on those buy. I also indicated that we are loosing foreign investment and that was one of the major causes of loosing 5.24% market this week. Other then these were the pre budget rumors/statements become the last hit to the market.
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