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Friday, December 20, 2019

Week 51 - Closing Notes

Week 51 turned out against our expectations. Technical rejection was faced at 42000 and index remained battered on the back drop of continued political noise. Short sellers made a comeback on continued index weakness, reminding the days of bearish rally. 

Looking forward to week 52 - the last trading week of 2019 - we can see index taking immediate support from 40600 - 40150 +/-100. In event of upside, resistance falls at 42500 +/- 100. Specific risk include possible selling pressure by foreign investor for holidays exit, political disturbance emerging once again and continued attack by short sellers in absence of volume.

Edit: 24 Dec 2019

Market cap continued to fall for entire week but posted a rise on Friday, signalling the return of buyers to the market. WoW basis, average market cap increased by 110.91 billion PKR which means market has remained healthy and any downtrend was just a correction wave. 

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