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Friday, December 25, 2020

KSE100 Week 52-2020: Dedicated to the Father of the Nation

Let us pay rich tributes to the father of the nation, Late Muhammad Ali Jinnah (25 December 1876 – 11 September 1948) on the occasion of his birthday. His ideals of patience, foresightedness, and standing firm in the face of adversity carry deep lessons for all stock traders. 

"Failure is a word unknown to me."

Muhammad Ali Jinnah

KSE100 took a corrective dive at the start of the week but successfully honored its previous resistance of 43000 +/- 300 as support. However, weekly closing observed a loss of -324 index points or -0.74%  - which failed to impress.  We carry forward our previous week's stance of 44700 - 45500 +/- 300 with a pivot zone at 43800 +/- 100 as the next upside target. A strong pivotal rejection may drop the index down to support or two. One shall keep their composure in trading and do not panic react to market volatility. Dip remains a buying opportunity if the right target is hunted! 

Weekly capitalization data once again demonstrated the feared divergence signal of 8000+ billion/PKR saturation point. Not only the intraday capitalization failed to cross the 8000+ billion/PKR mark again but the weekly average also closed lower by negative -35.52 billion/PKR. It may have been caused by short-term profit booking due to domestic and international holidays or shorter trading week. We shall not consider it business as usual and remain cautious on profits. If the situation remains regressive during the week ahead, this could signal a strong correction wave. On the bright side, sustaining a weekly closing average above 8000+ billion/PKR would be an event worth celebrating! 

Events that may influence the equity markets are MTB and PIB auction on 30-Dec. 

Happy trading and share your thoughts in the comments below. 


  1. Amazing as always stockmaster

  2. I appreciate ur depth of knowledge on equity markets. Mostly ur assessment on market proof right

  3. Outstanding blog master ✅

  4. I appreciate ur depth of knowledge in markets

  5. Coming week will be awesome Inshallah

  6. Awesome analysis blended with reminder of paying tributes to Quaid and his teachings which can be practiced by stock traders. Really like this artistic piece

  7. That's a well-read analysis. Just a thought on market capitalization: is it fair to compare the numbers in PKR without comparing the USD/PKR variation between different time periods?

    1. Currency conversion can give false impression as USD/PKR does not have a fixed peg. Further our market are traded in PKR. As as rule of thumb the evaluation must be made in the trading currency. So USD based capitalization is irrevelant here.

  8. Your analysis is great stick Master.