PSX Daily Market Review 19 Oct. 2016

The Bench Mark KSE100 Index Opened at 41282.72 points and started moving in negative direction from same level and hit the day low of 40759.96 points while session suspended at 40954.22 points with net change of -328.50 points and net trading volume of 164.54 million shares. Daily trading volume of KSE100 listed companies increased by 15.09 million shares or 10.1% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices dropped by 18.36, 57.62 and 16.65 billion Rs on DOD bases during last trading session.
Foreign Investors remain in net selling of 5.33 million shares and net value of Foreign Inflow dropped by 3.14 million US Dollars. Categorically Foreign Corporate and Overseas Pakistani Investors remain in net selling of 4.88 and 0.48 million shares respectively but Foreign Individuals Investors remain in net buying of 23501 shares. While on the other hand Local Individuals, Mutual Funds and Banks remain in net selling of 7.71 mln,3.63 mln and 79550 shares respectively but Local Companies and Brokers remain in net buying of 11.07 and 2.9 million shares.

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 41544 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.
Crude Oil prices have tried to penetrate its intraday triangle in upward direction and till so far it have completed in its struggle to penetrate first strong resistance of 50.70 in upward direction but still 51.68 USD/bbl region is intact as a strong resistance for crude oil prices. For current trading session PSX can have a positive push from oil sector as overnight crude oil prices have added some value to oil sector stocks by generating some positive hopes for upward price direction.

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.