Corona fear persisted across the week and after posting some corrective "dead cat" bounce as mentioned earlier Index resisted once again in our predicted range of 38900 +/- 100 points and fell considerably on Friday.
WoW basis, Index posted its biggest single day drain although weekly average closed slightly positive. However, we expect capital drain to continue and worst is yet to come.
Abnormality was witnessed in cement sector with many prominent cement stocks opening gap up for few successive trading sessions follows by a sharp straight line drop on Friday.
Oil has crashed on the impact of OPEC+ failure to reach an agreement between Saudi Arabia and Russia on oil production cuts. The two crude oil titans are likely to ramp up production and fight the match of defending market share.
Looking forward we reiterate our views posted in two previous updates (link here & here) and like to remind that index has very little juice left to go further downwards therefore value hunting season is on. However, with the evolving situation on corona scare, this upside is likely to be shorted lived if situation does not improve.
Index Support : 37700-37900 +/- 100
Index Resistance : 39600-39850 +/- 100
Failing to honor its support will push the index to a new lower low and further worsen the bearish run.
Failing to honor its support will push the index to a new lower low and further worsen the bearish run.
What's your advice for those holding ogdc(125) and ppl (118) rate pe
ReplyDeleteThere is my email on the top in blog description and you can write me there. I will not give opinion in public forum as per prevailing rules and regulation.
DeleteSell immediately
ReplyDelete