The week closed with a net loss of -63 points or -0.14%. Speculation over the interest rate kept the momentum weak and the index faced continuous rejection at its pivotal resistance of 461000 +/- 100. With the rollover week ahead we expect the index to remain volatile until weekly closing and technical levels of S/P/R remain unchanged. Initial support stands at 45500-44700 +/- 300 while the expected current channel top is at 46800 +/- 300. The divergence signal indicates potential exhaustion and may prove to be a trigger for major profit booking. With the weakening momentum, the probability of trend reversal is higher than a significant breakout above the current channel top. The period between late Feb to mid-Mar will be of critical importance and a grazing party for the bulls of next season!
While index capitalization has once again closed above the benchmark of 8000+ billion/PKR but it is finding it difficult to break further high with range bound movement observed. The weekly average closed with a minor net loss of -33.21 billion/PKR which indicates that no significant withdrawal of investors was observed and the change may be caused by sector rotation.
Events that may influence the equities market are MTB & PIB auctions on 27-Jan, 2021.
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