World Stockx

The index opened negative and took a sharp downtrend; however after touching its days low of 11,633 down by 129 points, made a recovery and finally conclude the session at level of 11,746.09 with decline of 16.63 points. Volumes at ready counter further decline by 24.34% and stood at 63.86mn as compared to the last day volume of 84.40mn shares.
On technical ground resistance levels to overcome for the day are 11,792, 11,829 and 11,851. On the contrary immediate support is defined at around 11,676, 11,640 and 11,590. Yesterday index registered a lower high or lower low formation which suggest a further downside for the index. Moreover Stochastic Oscillator on daily charts has now started to reverse its direction and indicating a downward move for index. However any downside move from here would find support from the short term and medium term moving averages lies in between 11,670 – 11,500. On the flip side resistance remains firm in b/w 11,829 – 11,940. So we recommend Sell or Sell on Strength and wait for weakness.

Market kicked-off the day in green zone and the benchmark Kse-100 index after making an intraday high of 12,046 closed at a level of 11,762.72 with a decline of 106.16 points, due to some profit taking witnessed by the investors at higher levels. Volumes at ready counter decreased by 16.54% and stood at 84.40mn as compared to the last day volume of 101.14mn shares.
For Kse-100, in short run resistance resides at 11,835, 11,891, and 11,910; where as immediate support levels are defined at 11,731, 11,671 and 11,610. The Stochastic Oscillator on daily charts maintains its uptrend and rapidly approaching the overbought region indicating towards the completion of recovery phase. Yesterday the Kse-100 index made first attempt to penetrate the resistive range of 11,950 – 12,100 and make an intraday high of 12,046 but failed to maintain the intraday gain and closed with red numbers and well below its 100-DMA(11,835). This price action has now confirmed the major supply zone which in between 11,950 12,100. In order to gain more strength bulls could potentially retreat towards 11,670 – 11,570 and then likely re-attempt penetrating the defined supply zone. So we recommend Sell or Sell on Strength and wait for weakness.

Putting bears on the back foot, the sentiment among the bulls roared significantly enough that it took out multiple resistances in a single day. All thanks to the heavy weight oil & gas sector and fertilizer sector in which exuberant activity was witnessed which helped the benchmark Kse-100 index to close at a level of 11,868.88 with a massive gain of 307.21 points. Volumes at ready counter increased by 24.73% and stood at 101.14mn shares as compared to the last day volume of 81.08mn shares.
For Kse-100, in short run resistance resides at 11,914, 11,976, and 12,020; where as immediate support levels are defined at 11,784, 11,725 and 11,670. Yesterday market close above its 10-DMA (11,635), 30-DMA (11,719) and 100-DMA (11,840) which illustrate that bulls have taken some advantage over bears and are getting stronger. However since the index is still trading below its 200-DMA which is around 11,914 and expected to pose the resistance to the current bullish momentum. The Stochastic Oscillator on daily charts maintains its uptrend and indicating towards the further upside moves for the index. However the benchmark index is entering in congestion area in between 11,950 – 12,100 it is likely to remain volatile. So we recommend short term or intraday positions should be initiated cautiously with stop raise up to 11,720 targeting 11,950 – 11,980 or Sell on Strength.

The Karachi Stock Exchange witnessed a decent pull back on last day of week mainly due to the maximum gain registered in the heavy weight OGDC due to which the benchmark Kse-100 index gained by massive 278.18 points to close at a level of 11,561.67. Volumes at ready counter increased by 16.92% and stood at 81.08mn shares as compared to the last day volume of 69.76mn shares.
On WoW analysis the benchmark Kse-100 index gained by 36.42 points or 0.32%, while average volumes at ready counter decreased by 12.61 % and stood at 75.25mn shares as compared to last week’s average of 86.11mn shares. Banks/DFI’s, Local Investors, Mutual funds & NBFC were emerged as net buyers of US$9.89mn, US$3.25mn, US$1.53mn & US$1.13mn respectively. On the other hand Foreign Investors, Local Companies & Other Organizations were the net sellers during the week of US$7.87mn, US$6.42mn & US$1.51mn respectively.
On technical ground resistance levels to overcome for the day are 11,605, 11,650 and 11,710. On the contrary immediate support is defined at around 11,537, 11,497 and 11,454. The Stochastic Oscillator on daily charts has now generated a buy signal in the oversold region however on weekly charts maintain its downtrend as well as its sell signal which indicates that short term pull back is likely to continue. The newly formed supportive cluster defined between 11,450 – 11,410 is our immediate risk level, however, the pull back should have to give a strong follow through move to confirm its strength, while immediate upside objective for the Kse-100 ranges in 11,650 – 11,712 and later 11,774 – 11,844. It is pertinent to note that 10-DMA has bearishly crossed over the 30-EMA (around 11,650); thus the aforesaid crossover level is likely to be a bear stronghold. On the other hand the violations of an aforementioned support level result in a decline towards 11,180. So we still maintain our cautious stance and recommend short term or intraday positions should be initiated cautiously with strictly defined risk level or Sell on Strength.

The index continued with its down trend on fourth consecutive session and the benchmark Kse-100 index closed at a level of 11,283.36 with a decline of 103.86 points. Volumes remain low and decline by 13.82% to stand at 69.76mn shares versus 80.94mn shares traded previously.
On technical ground resistance levels to overcome for the day are 11,332, 11,370 and 11,395. On the contrary immediate support is defined at around 11,222, 11,180 and 11,154. The MACD on daily charts continues its downtrend and maintains its sell signal indicating a further downside for the index. However The Stochastic Oscillator on daily chart has now approached the relative oversold position which suggests a short term pull back for the index. Immediate support is expected in between 11,220 – 11,150 and the sustained penetration below the same will provide further strength to the bears which would lead the market towards 11,030 – 10,940. So we still maintain our cautious stance and recommend Buy for Trade or taken as a whole Sell or Sell on Strength only.

Another negative session was witnessed at local bourse on Wednesday and the benchmark Kse-100 index further decline by 130.07 points to close at a level of 11,387.22. Volumes at ready counter increased by 16.92% and stood at 80.94mn shares as compared to the last day volume of 69.22mn shares.
On technical ground resistance levels to overcome for the day are 11,437, 11,474 and 11,520. On the contrary immediate support is defined at around 11,332, 11,300 and 11,265. The current formation of lower high and lower low suggests that the downward movement is likely to continue. Yesterday Kse-100 index closed around the lower band of the Bollinger Band. Although index have broken the lower band on intraday basis but managed to close inside the lower level which indicates a short term pull back for the index towards the middle level (11,788) however since the index is trading in b/w middle and lower band the overall structure is negative. So we still maintain our cautious stance and recommend Buy for Trade or taken as a whole Sell or Sell on Strength only.

The index opened on a negative note and after trading in the red zone in the initial hours of the day (registered a low of 11,603), took to an uptrend and finally conclude the session at a level of 11,685.15 with a gain of 44.69 points. Volumes remain low and decline by 32.92% to stand at 75.41mn shares versus 112.42mn shares traded previously.
For Kse-100, in short run resistance resides at 11,728, 11,761, and 11,795; where as immediate support levels are defined at 11,640, 11,595 and 11,540. Yesterday market react from its immediate support and recovery from the current level indicates further upward moves however since the index is already trading below its short term and long term moving averages any upside from here would face strong resistance from the same moving averages. Immediate support in b/w 11,595 – 11,540 and slipping below this support zone will reflect selling pressure towards 11,389. We expect some strength in the index for the day, but we still maintain our cautious stance and recommend Buy for Trade or taken as a whole Sell on Strength.

Denying all supports, the benchmark Kse-100 registered a heavy decline and during the session index hit 11,565 points intra-day low level, however in the late hour; the market recovered and managed to close above 11,600 and closed at level of 11,640.46 with a massive decline of 271.73 points, mainly due to heavy selling witnessed by foreign investors and Banks and recorded a net outflow of US$6.14mn and US$4.40mn respectively. Volumes at ready counter increased by 38.54% and stood at 112.42mn shares as compared to the last day volume of 81.15mn shares.
On technical ground resistance levels to overcome for the day are 11,701, 11,730 and 11,770. On the contrary immediate support is defined at around 11,588, 11,540 and 11,497. The Stochastic Oscillator on daily charts has now approached its relative oversold position but still maintains its downtrend and indicating towards a further decline for the index. Moreover it is important to note that MACD just crossed below its signal line on daily charts and generate a sell signal. This is a bearish signal which also suggests that the index is poised for further downside. Yesterday market closed below the middle level of the Bollinger Band and 30-EMAwhich illustrate that bears are getting stronger and indicating that bearish trend is likely to continue however we expect some rebound from 11,588 which is our immediate support level, but closing below this level will provide further strengthen to the bear and next target would be 11,399 – 11,330. So we recommend Buy for Trade and taken as a whole Sell on Strength.

The index opened flat, however after touching its day’s high of 12,028, took to a downtrend and finally closed at a level of 11,912.19 with a decline of 63.36 points Volumes improved by 2.10% to stand at 81.15mn shares versus 79.47mn shares traded previously.
On technical ground resistance levels to overcome for the day are 11,984, 12,054 and 12,088. On the contrary immediate support is defined at around 11,895, 11,845 and 11,815. Yesterday index marginally closed below its 200-DMA and 10-DMA which illustrate that bears have taken some advantage over bulls and are getting stronger. The Stochastic Oscillator on daily charts maintains its downtrend and steadily approaching to its oversold area indicating towards a further decline. Moreover MACD on daily charts too has started to show weakness and could potentially generate a sell in the near term. Immediate support for the index stand at 11,895 (100-DMA) and if the index fails to hold above, further decline towards the important support area 11,797 – 11,738 would become imminent.

The local bourses witnessed a tight trading range on last day of week and the benchmark Kse-100 index oscillated in a band of about 110 points and finally the index closed at level of 11,988.09 with a gain of 21.80 points. Volumes improved by 0.52% to stand at 92.16mn shares versus 91.68mn shares traded previously.
On WoW analysis the benchmark Kse-100 index gained by 134.25 points or 1.13%, while average volumes at ready counter increased by 65.95% and stood at 125.29mn shares as compared to last week’s average of 75.50mn shares. Mutual funds, Local Investors, NBFC, Local Companies & Other Organizations were emerged as net buyers of US$6.12mn, US$5.84mn, US$3.52mn, US$1.51mn & US$1.30mn respectively. On the other hand Banks/DFI’s & Foreign Investors were the net sellers during the week of US$15.44mn & US$2.86mn respectively.
On technical ground resistance levels to overcome for the day are 12,031, 12,059 and 12,118. On the contrary immediate support is defined at around 11,936, 11,896 and 11,839. The candle stick formed on weekly charts was long upper shadow which is an indication that buyers dominated but failed to maintain the gains. This is bearish but a follow through confirmation is required. However, it is important to note that the price action has regained the 21 day moving average (11,855 also a middle level of Bollinger Band) on weekly basis which is bullish. Currently the immediate support is defined in between 11,895 – 11,855 while supply could be observed at 12,160 – 12,208 and later at 12,280. Should the market be able to penetrate through the mentioned ceiling level, we anticipate that it will rise further towards next resistance defined in between 12,440 – 12,540. On the contrary, 11,855 defined as the immediate support level, failing to hold the same will put further pressure towards 11,700. We recommend Buy or Buy on weakness with immediate stop at 11,855 targeting 12,205.