PSX Daily Market Review 08 June 2016

The Bench Mark KSE100 Index Opened at 37352.27 and posted day high of 37539.14 and dropped towards 37331.39 to post day low while session suspended at 37392.29 points with net change of 40.02 points and net trading volume of 102.83 million shares. Daily trading volume of KSE100 listed companies dropped by 58.3 million shares or 36.18% on DOD bases. Market Capitalization of KSE100, ALLSHR increased by 2.13 and 2.43 billion Rs or 0.11% and 0.03% respectively but Capitalization of KSE30 dropped by 552.52 million Rs or -0.04% on DOD bases.
Foreign Investors remain in net selling of 0.18 million shares but net value of Foreign Inflow increased by 2.01 million US Dollars. Categorically Foreign individuals and corporates remain in net selling of 10855 shares and 0.36 million shares respectively but Oversease Pakistanis remain in net buying of 0.18 million shares. While on the other hand Local Individuals and Brokers remain in net buying of 4.60 and 3.24 million shares respectively but local companies, Mutual Funds and Banks remain in net selling of 0.46, 1.37 and 5.90 million shares respectively during last trading session
FML, PPL and LUCK remain in top three index movers and they have pushed KSE100 index in positive zone by 61.78, 55.15 and 28.47 points with net price change of 17.47, 6.11 and 11.73 Rs/share respectively while on the other hand FFC, DAWH and ENGRO have tried to drag KSE100 index in negative zone by -28.75, -19.15 and -12.92 points and net price change of -2.19, -3.03 and -2.63 Rs/share respectively during last trading session.

The Bench Mark KSE100 Index is moving in overbought region since last half month on Daily chart as it have not taken any serious correction since start of its last rally from 30474.37 points. Now its moving in a bullish daily trend channel towards 37779 points where it will face a strong resistance from resistant trend line of its bullish trend channel. On Intra-day bases it have resistance regions ahead at 37570 and 3779 points while supportive regions stands at 37055 and 36802.46 points. Major resistant region for current rally is moved at 38111 points where it will face a strong resistance also from where it can start a correction. Daily Stochastic and Moving average over RSi are trying to generate bearish crossover and if they will succeed in this process then KSE100 index can be pushed back towards 35950 points.

KSE100 Index is about to complete fifth wave of its bullish Elliot Wave on weekly chart, on technical bases that fifth wave would have to be completed before 37972, on completion of that wave market would start a correction or ABC formation which could drag index towards a correction of 61.8% of this bullish trend. Before completion of this fifth or last wave a slight correction can be expected as 3rd and 5th secondary waves are still pending in this primary wave.

International Indices are moving in upward direction with slight positive changes except FTSE100. FTSE closed with net change of -20 (-0.32%) points during last trading session while on the other hand Dow Jones (US30), S&P500 and DAX30 closed with net change of 21. 2.4 and 94 points or 0.12%, 0.11% and 0.93% on DOD bases but KSE100 Index closed with net change of 40.02 or 0.11% on DOD bases.