PSX Daily Market Review 20 June 2016

The Bench Mark KSE100 Index opened at 38751.60 and posted day high of 38965.34 points and dropped back towards day low of 38640.00 points during last trading session, while session suspended at 38776.94 points with net change of 25.34 points and net trading volume of 104.73 million shares. Daily trading volume of KSE100 listed companies dropped by 86.76 million shares or -45.31% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices increased by 0.61, 6.89 and 1.36 billion Rs or 0.03%, 0.09%, and 0.1% respectively on DOD bases.
Foreign Investors remain in net selling of 0.78 million shares but net value of Foreign Inflow increased by 9.01 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remain in net buying of 44001 shares and 0.34 million shares respectively but Foreign Corporates remain in net selling of 1.17 million shares during last trading session. While on the other hand Local Individuals, Mutual Funds and Banks remain in net selling of 4.45, 1.68 and 2.71 million shares but Local Companies and Brokers remain in net buying of 7.90 and 1.98 million shares respectively.
HBL, DAWH and PSEL remain top three Index movers and they have tried to push index in positive zone by 119.00, 24.50 and 15.94 points with net price change of 9.57, 3.86 and 30.60 Rs/share respectively while on the other hand, FML, PPL and FFC remain top three index shakers and they have tried to drag KSE100 index in negative zone by -44.05, -31.63 and -23.60 points with net price change of -12.41, -3.49 and -1.79 Rs/share respectively.

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. Since last four months it was moving in a bullish daily trend channel towards 37779 points but now it have penetrated its said bullish channel in upward direction and since last three trading sessions its closing outside of its bollinger bands now its also getting support from resistant trend line of said channel around 38602 pionts. On Intra-day bases it have resistance regions ahead at 38959 and 39072 points while supportive regions stands at 38424 and 37651 points. Major resistant region for current rally is moved at 39072 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 38419 points, on completion of that wave market would have to start a correction or ABC formation which could drag index towards a correction of 61.8% of this bullish trend. A minimum correction towards 34696 is required on technical bases if this bullish momentum needs to be continued.

Major American Indices, Dow Jones (US30), S&P500 and NASDAQ100 closed in negative zone with net change of -69, -8.1 and -53 points or -0.39%, -0.39% and -1.2% respectively, while on the other hand German blue chips index DAX30 and UK Stock Market Indicator FTSE100(UK100) closed with a slight positive change of 33 and 70 points respctively or 0.34% and 1.17% during trading session of 17th June 2016. KSE100 index also followed European Indices instead of Americans and closed with net change of 25.34 points or 0.07% on DOD bases.