PSX Daily Market Review 27 July 2016

The Bench Mark KSE100 Index Opened at 39017.32 and posted day low of 38996.44 and day high of 39196.15 points during last trading session while session suspended at 39147.33 points with net change of 130.01 points and net trading volume of 112.58 million shares. Daily trading volume of KSE100 Index listed companies increased by 30.68 million shares or 37.47% on DOD bases. Market Capitalization of KSE100, ALLSHR and KSE30 Indices increased by 6.9, 20.75 and 2.88 billion Rs respectively.
Foreign Investors remain in net selling of 4.09 million shares but net value of foreign inflow increased by 1.40 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remain in net buying of 0.2 and 0.52 million shares respectively but Foreign Corporates remain in net selling of 4.81 million shares, while on the other hand Local Individuals, and Brokers remain in net buying of 6.76 and 0.45 million shares but Local Companies, Mutual Funds and Banks remain in net selling of 1.01, 0.11 and 1.0 million shares respectively on PSX platform.
PSEL, PAKT and HBL were top three Index Movers of the day and they have pushed KSE100 Index in positive zone by 18.23, 13.03 and 12.57 points with net price change of 34.99, 55.91 and 1.01 Rs/share respectively but OGDC, PPL and FML remain top three Index Shakers and they have tried to drag KSE100 Index in negative zone by -31.98, -30.11 and -18.61 points with net price change of -2.63, -3.32 and -5.24 Rs/share respectively.

Technically KSE100 Index is moving in upward price channel on daiy and weekly chart right now its getting support from its weekly double bottom at 38905 points, while on the other hand its capped by a horizontal resistance or weekly double top at 39420 points along with a resistant trend line at 39592 points. Right now its range bound between 38905 and 39420 points and swing trading can be beneficial until breakout of either side, closing below 38905 can call for a further dip towards 38239 and 37948 points where it will get strong support from resistant trend line of its long term bullish channel along with a horizontal supportive region, while penetration of 39420 points will call for 39853 points. A serious Correction is still due in KSE100 as it is not corrected since start of its last rally which started from 30275 points. Right now intraday trading can be beneficial as Index will swing between its supportive and resistant regions and have no clear bullish or bearish trend on short term bases.

KSE100 Index is still not becoming able to start a new bullish trend after penetration of its previous long term bullish trend channel. Technically its creating a cheat pattern by penetrating resistant trend line of said channel. Monthly and weekly charts still caught in fifth wave of Elliot wave and its expected that a correction will start sooner or later as monthly Stochastic is trieng to generate a bearish cross over which can push index in negative zone.