Technical Forecast for KSE-100
For the First Week of Nov, 2009
By
Khalid Saifuddin
Updated: Saturday, October 31, 2009
Hi Folks:
The whole week market was under heavy selling pressure by mutual funds, and the Peshawar blast added more to the market. Though the buyer were striving hard to support market and the visit of US foreign minister was also scheduled to help the country’s current uncertain political and economic situation, I am pretty optimistic that her visit will impact positively to the economy and it is observed that Ms Clinton will be able to suggest the US administration to rectify their policy to secure Pakistani interest. I really like to request the KSE and the regulators to please come forward and introduce some new products and do some road shows for the awareness of the local investors.
Market is bearish for now; Foreign investment still adding more and more to our reserves but we still like to have some institutional buying and control law and order situation in the country to stabilize the market.
Market Possibilities.
· To get out of completely from ongoing depression it is required for market to break the 9565.
· Bulls will be having energy after breaking 9395
· Breaking 9250 will enhance the confidence of local investors and might get mutual fund back into buying.
· Minimum weekly closing above 9425 for bull hopes
Maximum Possibility of Weekly High and Low**
9,854****
8,768**
Some short term buying possibilities still exist in the market, investors must do profit taking if they see 9,325 on Monday. The ultimate hopes are still bullish; market will give a chance to the target buyer for high returns
Key Levels**
9,478****
9,395****
9,238****
9,035****
8,891****
8,790**
Dear Members/Clients
If you are aware of our weekly reports and the morning briefings then I am sure you realized the market high of the last week was exactly at our level which was 9,478 and market recorded 9,476 as a high for the week and this where we recommended the profit taking. And then low was also well supported by our levels. I specifically like to congratulate the traders who followed the AICL, DGKC and OGDC and were able to book the highest return for this week. I really like all of my readers to please come forward and learn the rules of engagement and enhance their trading skills. I am open for all those who really have the commitment towards the goal.