KSE100: Week 48 Closing Notes and Outlook for Week 49 (2020)

To start off, index closed WoW basis in neutral territory with literally 0.00% gains.  The lower pivot zone is proving to be a multi tested supply zone and recovery is observed from this point with surging volumes. The technical levels are updated as index carved a new pivot zone around 41200 and still needs to cross 41900 +/- 200 to be in major bullish zone.  

So did our pessimism on the index paid off? Absolutely, as the entire week gains failed to sustain on the last trading day due to aggressive profit booking. We retain our pessimistic view until a clean break above 41900 +/- 200 is observed. Looking forward, the range bound movement is expected to break on the upside if 40700+/-200 continue to hold as support. 

Weekly average capitalization demonstrated a positive trend across the trading week, baring the last day where slight profit booking is observed. The last trading day closed higher as compared to previous week average but WoW average is down by -11.03 billion/PKR which is to be regarded as very small loss. The rising capitalization represents investor interest to absorb the dips as accumulation opportunity. 

Edit 3-Dec: Events which may influence the capital markets are PIB auction on 02, 09, 16, 30 Dec. MTB auction on 02, 16, 30 Dec and Ijara Sukuk auction on 03-Dec.