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KSE-100 INDEX

KSE-100 Index closed lower on Thursday due to speculative selling. Though it opened at a positive note, it succeeded in staging 29 points rally, but profit-taking at higher rates erased all gains.

Technically, the market's hesitation to sustain above from its major resistance 1,806, along with testing all stop-out prices, indicates lack of bullish potential. It is expected that in near term it may remain directionless until fresh fundamental developments help change its direction. On trading charts, immediate support is expected at 1,778, 1,755 and resistance at 1,785 and 1,810. Since the market failed to give upward breakouts, we expect more losses in near term. It is better to stay on the sideline and take a position after clear direction.

PTCL

Despite fresh buying, the PTCL failed to sustain at higher prices. At opening, there was buying interest but after the announcement of annual performance of the company the market started loosing its potential for more gains.

On trading charts, overhead resistance is expected at Rs 30.40 and support at Rs 29.90. Technically, the market is still trading under the bearish mood that set in January 25, 2000. Upper level is Rs 31.40 and lower level is Rs 27.90.

The market's directionless behaviour will continue as long as it trades between these two limits. Therefore, it is suggested to buy around its major support Rs 27.80 and sell around Rs 31.40. After penetration of either side one can take position for long-term investment.

HUBCO

Ill-fated Hubco failed to sustain above from its major support Rs 28.80 on Thursday and is expected to face more losses in near term.

Technically, the scrip was trading sideways for the last several days. During this sideways behaviour it remained unable to challenge its major resistance between Rs 28.60 and Rs 28.80. On Thursday it succeeded in giving new rate at Rs 29.20. It was expected that it might show aggressive rally but fresh selling forced the market to close down. On its way it did not consider Rs 28.60 as important support in depression and went down to find new stop.

Technically, the market's behaviour is pretty disappointing and we expect more losses during the remaining days of the current account period. Nevertheless, we will continue to consider Rs 28.60 as major resistance price. For short-selling that price will be our stop-out price.

For risk lovers it is recommended to sell Hubco with one rupee stop loss.

DEWAN SALMAN FIBRE (DSF)

The share opened at a positive note and succeeded in attracting some buying but later on lost its potential. According to our studies, Rs 32.10 is a very good support level and the scrip's last day's behaviour proved it.

On Thursday, if it opens above Rs 32.50 we can expect the continuation of the positive rally, otherwise it may take a dip for technical correction.

Technically, immediate support is expected at Rs 32.50, Rs 32.20 and then at Rs 31.80 and Rs 31.00. On the other hand, immediate resistance is expected at Rs 33.20 and then at Rs 33.50. One should consider these support and resistance levels carefully.