Follow up from our previous update (link), the index has honored its high of 33600 +/-100 and then dipped to test its support at 31800 +/- 100 on an intraday basis. We now wait for these levels to be confirmed on a closing basis.
Market capitalization started with a slight gain on the first day of the week followed by a drop the next day. Capitalization stood relatively neutral today against the expectation of a drop due to MTB auction. This perhaps demonstrates a lack of equity investor's interest due to reduced yields.
Looking forward we expect the market to re-test its support and resistance zones on a closing basis. It is approaching near its technical saturation point which can trigger mass profit taking to change the trend downwards. Further reduction in interest rates is a positive trigger for the market.
Any upside will face the next resistance in the range of 34800 +/- 100 whereas, support falls in the zone of 31800-32400 +/- 100. This will be the previous resistance zone now acting as support.
Jazaa ka AllahReplyDelete