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Sunday, June 20, 2021

KSE 100 Week 24-2021 : Post Budget Fizzle Out!

Not much enthusiastic reaction to post-budget fervor. A boundary rejection from 49000 +/ - 300 means that 48200 +/- 100 shall act as pivotal support to keep bulls in momentum (previous resistance now acting as support). The stance from last week is reiterated with a special focus on small to mid-caps. For important support and resistance levels, refer to the chart below.

On the fundamental front, induction of new DFC contracts with 60 and 90 days expiry will have an impact on volatility. Currently, we assess the situation as stabilization in the short term but increased volatility in the long term - a benefit to those who play their cards right. Refer to the official PSX document for detailed information. 




Market capitalization is sustaining above its critical resistance but the delta is shrinking razor thin. This may create a pattern of sharp upward breakout followed by a correction cycle. Taking its advantage to sell on strength and retire to cash. 







5 comments:

  1. Thanks for your guidance as always. Stay blessed

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  2. Best analysis as always, thanks master

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  3. Always satisfying aftrr reading blog

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  4. Your weekly blog title always amazes me. It makes me more curious to read your stuff. Btw a very good luck for your examinations. You have made me think towards Econophysics for the financial markets. All readers must read stockmaster's previous blog editions as well and then analyze, I bet it will help you understand the market dynamics.

    Best Regards

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