PSX Daily Market Review 17 Oct. 2016

The Bench Mark KSE100 Index Opened at 41412.04 points and posted day high of 41512.44 and day low of 41170.43 during last trading session while session suspended at 41464.31 with net change of 52.247 points and trading volume of 180.59 million shares. Daily trading volume of KSE100 listed companies dropped by 12.9 million shares or 6.67% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices increased by 1.28, 26.15 and 0.19 billion Rs on DOD bases.
Foreign Investors remain in buyng of 6.95 million shares and net value of Foreign Inflow increased by 3.93 million US Dollars. Categorically Foreign Corporates and Overseas Pakistanis remain in net buying of 2.62 and 4.37 million shares respectively but Foreign Individuals remain in net selling of 34701 shares. While on the other hand Local Individuals and Brokers remain in net selling of 31.09 and 1.82 million shares but Local Companies, Banks and Mutual Funds remain in net selling of 15.05, 17.54 and 12.61 million shares respectively during last trading session.
Foreign Investors and have gained some interest in PSX during last week and their net holding changed to buying with net volume of 13.47 million shares. With this net buying volume Month to date Net volume of Foreigners have become 2.4 million shares in buying. While on the other hand Local Companies, Banks and Brokers are losing confidence and theri net Month to date trading volume for current month is in net selling of 68.08, 48.03 and 42.2 million shares respectively.

Only hope for dying bullish sentiment at PSX is from curde oil prices as bullish crude prices will send a fresh breez for Oil sector which can push index further advance direction. But right now crude oil price are not looking too much attractive as they are coming down after getting a strong resistance from monthly and weekly tripple top at 51.68 USD/bbl. On intraday bases crude oil price (DEC-16 contract) are stuck in between a triangle and its going to face a strong resistance around 50.70 USD/bbl. If Crude oil prices would become able to close below 49.60 today then crude trend would be changed on short term bases which will push Oil sector in negative direction.
The Bench Mark KSE100 Index was moving in an upward price channel on daily and weekly charts but right now it have penetrated its daily chart in bearish direction. Its also capped by a resistant trend line on Daily Chart which can push it back from 41700 points while first supportive region after this pullback would be 40659 points and second one would be 40113 points. On bases of Technical Analysis its not recommended to intiate massive new buying at PSX as its expected that it can start a correction from upcoming 400 points, but right now some selective shares are looking attractive as they already have completed their corrections and they will support index from massive crash during correction so new buying could be initiated in only selective shares. PAEL, BYCO,DGKC, ENGRO, SING, TPL and FFBL are looking attractive on current prices as they already have completed their corrections.

On Weekly Charts KSE100 Index have generated a bullish engulfing pattern but negative effects of last evening start still have not been disappeared. It also have penetrated its bullish trend channel in negative direction and right now its cagged in a bullish wedge. Downward penetration of that wedge will call for a downfall of around 1000 Points.