KSE100 continued to bleed, losing -362 points or -0.8% on a weekly closing basis. The critical pivot level of 46100 +/- 100 has been breached. While a retracement was observed at the support of 45500 +/- 300, it proved to be a dead cat bounce and the leading rejection from pivotal resistance affirms bears in control. As a result, we reiterate our stance as mentioned in so many previous posts that KSE100 is expected to stay in the corrective phase for the first half of Mar-2021 and bear hunters will take the trophy home. 45500 - 44700 +/- 300 remain the two important support levels and in event of a meltdown, we may see a free fall towards 43800 +/- 300. But we assign little probability to a breakdown further below. Also, the strength of the market has been demonstrated by a slow regression and sector-wise exchange of hands rather than a swift meltdown as it used to occur in past. For a better understanding, please read previous updates from the last three weeks.
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Saturday, February 27, 2021
KSE100 - Week 08-2021: Blood on the Trade Floor!
Once again, weekly average capitalization dunked by -106.43 billion/PKR - significantly higher than the previous week but still a triple-digit figure on the lower side. This signifies investor confidence in buying the dip. Overall, the bourse is expected to stay in high liquidity owning to numerous reforms for attracting funds into the equity markets.
Events that may impact the equity markets are PIB auction on 3-Mar & 31-Mar. MTB auction on 10-Mar & 24-Mar and Ijara Sukuk auction on 11-Mar of the CY2021.
Happy trading and if you enjoyed reading this update, please let us know in the comments section below.
[Edit 1-Mar: inaccurate capitalization data is corrected and the chart is updated to reflect the correction.]
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Technically speaking, 42800 +/- 300 is proving to be a firmly held bottom but overall bears refuse to surface. The major trend remains side ...
The week started off with the COVID-19 Omicron variant washing global markets into deep red, causing the index to briefly hit its second ma...
Master you're a master piece 🙌ReplyDelete
When everybody was saying tezi tezi but you were asking correction correction...ReplyDelete
Hats off to you.
Its very usefull and always love to read yours weekly analysis. Thanks for your time and efforts.ReplyDelete
SM, you are ruling out the probability of heavy index correction now in MArch as i understand from todays post. Means no fresh bottoms are to be anticipated for quality stocks?ReplyDelete
Post clearly says mid of Mar-2021 will be bear hunting season. Not sure where your senses are?Delete
Nice blog stock masterReplyDelete
Great analysis as everReplyDelete
Excellent read, thank you!ReplyDelete
Very well said👍🏻👍🏻ReplyDelete
Thanks for the useful post as usual, so targeted buying can result in fruitful results.ReplyDelete
Informative and good info on upcomming events on PIB MTB &SUKUKReplyDelete
Thanks for sharing. Stay blessed.ReplyDelete
Great work masterReplyDelete
Much appreciated and now waiting for the Mid March 🙂ReplyDelete
Excellent analysis, please keep it upReplyDelete