Initially, we planned to have no blog update as only two trading days in the week with no significant move to notice. However, eventually out of habit here is a belated updated. We expect an unstable market ahead due to roll over a week. Major support and resistance are marked below. The strategy is to accumulate on the dip.
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Tuesday, July 27, 2021
Monday, July 19, 2021
We wish our followers a very happy Eid Al-Adha 1442.
Looking at the bourse, another re-test of pivotal resistance at 48100 +/- 100 is expected, and with holidays ahead not much can be said. Looking forward, August futures will open with an addition of 60 and 90 days contracts which should smoothen the short-term volatility and provide more long-term swings. Overall, we remain upbeat on the market with a buy-on dip strategy. All major support and resistance levels are marked on the chart below.
Average weekly capitalization remained flat and closed at a negligible loss. We attribute this behavior to holiday-oriented profit-taking. The week ahead has much of its trading days off.
Monday, July 12, 2021
The pivotal rejection came to play once again and we may see some more see-saw ahead with dip presenting a buying opportunity. Major levels are marked on the chart below. Small to mid-cap remain under focus and the expected outlook is see-saw behavior in the short term. The pivot has been lowered to 48100 +/- 100.
Average weekly market cap is struggling in a narrow range but after two weeks of losing, it finally closed in the positive. Events that may influence the equities are MTB auctions on 14-Jul.
Sunday, July 4, 2021
A perfect honoring of 47000 +/- 300 was observed which was previous resistance acting as support. 48200 +/- 100 remains pivotal resistance to be re-tested for the second time. The overall strategy remains swing trade with buy on the dip. All levels are marked on the chart below, for better understanding read the previous updates.
Although the average weekly capitalization once again closed at a loss, the trend is sustaining itself above the benchmark barely by a thread. This keeps the situation hopeful with some common-sense measures. [Edit] In the money market there is PIB auction on 7-Jul.
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...