https://soundcloud.com/zafar-stocks/pakistan-stock-exchange-market-behavior-19-january-2016-with-future-prediction-zafar-securities
Tuesday 19 January 2016
Zafar Stocks PSX 100 Index (Zafar Securities Pvt Ltd)
ZSL, Day Wrap
It “seems” the bulls are back in the game as the 100 index closed up 464.21 points at 31,092.61 (+1.49%) extending on reversal that started yesterday albeit amid relatively thin market participation of 154mn shares compared to 210mn shares traded in the previous session . Following an initial dip into negative territory the 100 index recovered off its intraday low and rallied due to investor interest across the board. When considering performance of different sectors telecommunication, energy and industrials stood out and rallied the most today while among individual names PPL, FFC and OGDC contributed gains to the index.
From its low posted yesterday the 100 index managed to reclaim 1,308 points touching 38.2% retracement levels from its recent high of 33,320 posted on 10th December, 2015. It seems the market is trying to gain traction but investors may choose to stick to sidelines due to ongoing investigations against prominent brokers meanwhile continued foreign selling is also expected to dampen investor sentiment going forward.
Technically speaking,
With 100 Index now close to a supply zone between 33,150 – 33,550 index level the upside potential seems restricted. We would advise investors to tread carefully and exercise caution when initiating trading positions or rather stick to side lines and wait for confirmation before going long.
Analyst, Muhammad Naeem Akhtar.
Zafar Securities private Limited
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