By:
Stock Master
KSE100:
We expect market to maintain its downtrend and find support at 29000-28500
which should also be a target for short covering.
However,
recent news about update of SECP rules to support market liquidity may yield a
slight positive spike temporarily but rest assured, bears will return. Looking
at the big picture overall, there is still massive selling pressure coming from
mutual funds and insurance companies.
Looking
at monthly statistics of August for REG market, mutual funds and insurance
companies were dominant sellers while individual were dominant buyers. In FUT
market, mutual funds and broker were dominant sellers and individual was
dominant buyer.
We
are witnessing a change of trend in market players as institutions are exiting
and being taken over by individuals. This shows that market is entering an
attractive valuation phase where high net worth individuals are investing
heavily.
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