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Monday, November 15, 2021

KSE100 Week 45-2021 Closing Notes

After three weeks of winning streak, another break strike comes to the bourse as it hit the critical resistance of 47000 +/- 300 but at least this was in the naturally expected momentum of the market. Much needed pivotal support lies at 45100 +/- 100 which will bring the bulls back into action but the field is already conquered by the bear now. Further S/R zones are marked on the chart below. 

On the fundamental side, the rocky road with the IMF package has led to the destabilization of PKR vs USD setting off shockwaves of panic resulting in a meltdown of investor confidence once again. But looking at the week ahead, there is light at the end of the tunnel with Saudi deposits materializing and IMF negotiations progressing. Looking forward, the rocky ride remains the fate of PSX, and being prepared for disappointment will dampen its effect. Policy rate announcements remain another threat to the bourse where any hike in interest rate may set off a wave of selling. 

Critical benchmark of 8000+ Bn/PKR once again turned into a sell-off with the week closing at a net loss. The force is strong at this level! Events that may negatively influence the bourse is MTB auction on 17-Nov, 2021. If you enjoyed reading this update, do let us know in the comments below. 

1 comment:

  1. Good analysis as always. Nicely marked bottom line around 38800. Keep it up.