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Friday, June 12, 2020

KSE-100 Week 24-2020 Closing Notes: Correction as Predicted



KSE-100 took a corrective dip slightly earlier than our predicted resistance of 35500 +/-100 (vs 35253 actual high). The deviation was influenced by global equities sell-off and fall of -10% in oil prices.  On the lower side, day closing breached the first support of 34800 +/- 100 which could play out two possible scenarios. An intraday correction taking support from 34100 +/- 100 and posting recovery during the second half or a harder correction taking support at 33600 +/- 100 on a closing basis. 




The last trading day of the week saw a drop of -86.60 billion/PKR in intraday capitalization possibly due to profit-booking,  but overall weekly average gained +75.32 billion/PKR - a positive sign. 





Looking forward, we expect the market to keep trending strongly with the usual course of correction taking place where due. But caution must be exercised as ambitious T-bill and PIB auctions will expose it to the risk of a capital drain. Preserve your profits with a sensible exit strategy or stop loss.  T-Bill and PIB auction calendar is found here

3 comments:

  1. Does that mean we are about to see new lows? There's a lot ot speculation that this dip is temporary and market can bounce back to a 36000 level too.

    ReplyDelete