PSX Daily Market Review 13 June 2016

The Bench Mark KSE100 Index opened at 37414.26 points and posted day high of 37459.92 and dropped back towards 36828.82 points to post day low during last trading session while session suspended at 36940.88 points with net change of -473.38 points and trading volume of 71.08 million shares. Daily trading volume of KSE100 Index listed companies dropped by 27.03 million shares or -27.55% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Index dropped by 30.264, 102.53 and 24.61 billion Rs or -1.52%, -1.36% and -1.89% on DOD bases.
Foreign Investors remain in net buying of 0.81 million shares and net value of Foreign Inflow dropped by 3.05 million US Dollar. Categorically Foreign Individuals and Overseas Pakistanis remain in net buying of 64499 shares and 1.27 million shares respectively but Foreign Corporates remain in net selling of 0.52 million shares, while on the other hand Local Individuals, Companies and Banks remain in net buying of 6.48, 0.54 and 0.88 million shares respectively but Mutual Funds and Broker remain in net selling of 3.35 and 2.97 million shares respectively.
FML, NRL and BATA remain top three Index movers and they have tried to push index in positive zone by 70.76, 7.23 and 3.27 points with net price change of 20.23, 14.92 and 99.00 Rs/share respectively. While on the other hand HUBC, ENGRO and OGDC remain top three Index shakers and they have dragged KSE100 Index by -42.20, -41.71 and -38.87 points with net price change of -2.98, -8.46 and -3.20 Rs/Share respectively during last trding 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 it have started a bearish trend on daily chart and if it will become able to close below 36802 points today then next targets could be 36432 and 35952 points as 36802 is a strong supportive region for KSE100 Index. If KSE100 Index would not become able to close below 36802 region then it can bounce back towards 37375 points as 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. 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.