PSX Daily Market Review 04 August 2016

The Bench Mark KSE100 Index opened at 39786.93 and posted day high of 39833.66 and dropped back towards 39594.08 to post day low, while session suspended at 39615.76 points with net change of -171.17 points and trading volume of 103.04 million shares during last trading session. Daily trading volume of KSE100 listed companies dropped by 9.08 million shares or 8.1% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices dropped by 8.07, 36.48 and 8.08 billion Rs or 0.38, 0.46 and 0.58 percent respectively on DOD bases.
Foreign Investors remain in net selling of 11.09 million shares and net value of foreign inflow dropped by 3.52 million US Dollars during last trading session. Categorically Foreign Individuals, Corporate and Overseas Pakistanis remain in net selling of 12000 shares, 8.01 and 3.06 million shares respectively. While on the other hand Local Individuals, Companies, Banks and Brokers remain in net buying of 1.85, 3.01, 5.26 and 0.2 million shares respectively but Mutual funds remain in net selling of 1.01 million shares.

Technically KSE100 Index is moving in upward price channel on daily and weekly chart right now previous resistant region of 39420 points is acting as a strong support and it have penetrated its resistant trend line in bullish direction by posting a high of 39917 points but during last trading session it have create a evening star on daily chart which is an indication of bearish pull back. Major supportive region for Index stands around 38954 points untill penetration of 38954 points market seems in bullish mode on technical bases. But closing below 38954 points can call for a correction.

KSE100 Index is still not becoming able to start a new bullish trend after penetration of its previous long term bullish trend channel. Technically its creating a cheat pattern by penetrating resistant trend line of said channel. Monthly and weekly charts still caught in fifth wave of Elliot wave and its expected that a correction will start sooner or later as monthly Stochastic is trieng to generate a bearish cross over which can push index in negative zone.

Technically speaking KSE100 index is competing with Dow and NASDAQ on comparison chart but those both have fulfilled their correction and they are moving for expansions of their corrections but KSE100 is straight forwardly moving in bullish trend without a correction since 30275 points because index is moving in upward direction with Intraday correction and expansion technicques.