KSE100: Week-46 Closing Notes and Outlook for Week-47 (2020)

Weekly closing observed a loss of -162 points (-0.40%) with intra-sector exchange of hands across the entire week. The last trading day of the week closed with dragon fly doji formation in downtrend. Although we are not firm believers of candle sticks, they usually demonstrate a predictable behavior. A typical reaction of market to dragonfly doji is a dip in the next session followed by recovery. And the possibility remains open to test the upper boundary of pivot zone at 40000 points. Therefore, our outlook on the week ahead is clear. We may see a dull start, a retest of 40000 and then recovery at week closing. 

Market capitalization recovered in the early days of the week but end of the week trading shows significant profit taking. However, the weekly average closed with a gain of +57.55 billion/PKR which hints towards investors absorbing the dip. Events which may influence the equity markets are MTB and PIB auctions due on 18-Nov.