PSX Daily Market Review 18 Oct. 2016

The Bench Mark KSE100 Index Opened at 41464.31, posted day high of 41604.60 and dropped back towards day low of 41256.36 points during last trading session while session suspended at 41282.72 points with net change of -181.59 points and net trading volume of 149.45 million shares. Daily trading volume of KSE100 listed companies dropped by 31.14 million shares or 17.24% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices dropped by 10.89, 30.54 and 8.58 billion Rs on DOD bases during last trading session.
Foreign Investors remain in net selling of 1.78 million shares and net value of Foreign Inflow dropped by 1.71 million US Dollars. Categorically Foreign Individuals and Corporate remain in net selling of 0.56 and 1.96 million shares but Overseas Pakistanis remain in net buying of 0.73 million shares. While on the other hand Local Individuals and banks remain in net selling of 2.25 and 2.25 million shares but Local Companies, Mutual Funds and Brokers remain in net buying of 3.64, 0.1 and 1.76 million shares respectively.
With last trading session figures of selling by Foreigners net trading volume of Foreign buying have dropped to 0.62 million shares on Month till date bases and Foreign Individual Investors are playing key role this month with net selling of 5.5 million shares while Foreign Corporate Investors are also in net selling of 4.13 million shares both these categories are eating up net buying 10.25 million shares of Overseas Pakistanis.

Crude Oil Prices have not supported bullish trend of PSX as it could not become able to close above 51.68 USD/bbl. Still 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. MLCF, FCCL, ACPL, 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.