Despite volatile week KSE100 managed to gain +1102 point or 2.74% WoW closing basis. Rejection was observed at the lower boundary of 41900 +/- 200 which is proscribed critical resistance area and last day of the week traded much lower than this level. On the downside, 40700 +/- 200 is expected to play a strong support. A break down below this level shall be considered bearish sign. While a break above the critical resistance area of 41900 +/- 200 will trigger the second wave of bull run.
As stated in the previous update, we expected week 43-2020 to be a critical decision maker and with that retro respect, index weekly capitalization average closed with a gain of +123.37 billion PKR. Which is a significant recovery over previous week and the weeks before that with heavy losses. Looking forward,we expect the optimism to uptick at the exchange while index behavior may remain volatile due to futures roll over. Week 44-2020 will be short by one day due to Eid-Milad un Nabi holiday on Friday, 30th Oct, 2020.
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