KSE100 Week 01-2021: Energized in Full Swing!

 The first trading week of the year 2021 did tremendously well and beyond expectation. The outgoing week demonstrated a net gain of +1220 index points or 2.74%. The bulls took out two fresh resistance levels with ease, reaching our predicted high of 45500 +/- 300 relatively quickly. However, signs of exhaustion are starting to emerge, and looking forward we may witness a cycle of profit-taking. On the downside, previous resistance will now be acting as support with any major downtrend exposing 43800 +/- 300 once again. While on the upside, we keep our view limited and do not expect any major breakout. There is intermediate resistance at 46100 +/- 100 and critical resistance at 46800 +/- 300.  Expectations may be wrong but with signs of obvious exhaustion, one must practice caution to protect profit. The week ahead will be a major decisive moment.  

An amazing feat indeed as market capitalization floated above 8000+ billion/PKR for the entire week with a weekly average closing at 8221.30 billion/PKR and a net gain of +196.68 billion/PKR over the previous week. The investors have once again proven their confidence in PSX and absorbed the dip as a buying opportunity. Over the week, SECP also announced a working group to develop a private pension market (link-1) If this plan goes into action anytime in the future, it will translate into massive funds injection at the bourse. 

The event which may impact the equity markets are PIB auction on 13-Jan, MTB auction on 13-Jan and Ijara Sukuk auction on 14-Jan, 2021.

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