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KSE-100 INDEX

Despite negative performance on the settlement day, the market succeeded to stage smart recovery on the first day of the new account period due to fresh interest in blue chips. On Monday activities started with buying interest in PTCL, Sui Northern Sui Southern, and Hubco, dominated by institutional buying due to fresh development on the fundamental side.

In near term the market may find overhead resistance at 1985, penetration may set the next target at 2020, highest point of previous bullish run. Successful penetration may favour sharp rallies during remaining weeks of the month. From the downside immediate support is expected at 1955. Pivot point is expected at 1978, good opening may favours sharp move.

Technical outlook is neutral as 14 days RSI is moving around 65 with upward slope. Other pressure indicators also favouring positive behaviour in near term. It is recommended to buy credential shares with strict stop-loss points.

PTCL

In a volatile market, PTCL seems to be the only share that succeeded to consolidate its values in a tight range and showing enough room for upward rallies. On Monday PTCL made new high on daily trading charts on closing basis. Previous highest close was 32.85, registered in previous bullish rally. Its efforts to challenge such price is pretty encouraging, it is expected that in near term it may lead the market. Immediate support is expected at 32.80, which is also pivot price for the day. Ability to sustain above may help the market to stage another rally for significant gains.

Price level 32.80 may remain stop-out price for long positions. From above side overhead resistance is expected at 33.40, next direction will depend on penetration of that price. Long-term outlook is positive and it is better to buy PTCL on dips.

HUBCO

It was fourth time in two months that Hubco tries to challenge its most important resistance 28.90 on daily trading charts. This time if it remains unable to breach such price, it may go for significant correction. However, successful penetration (on closing basis) may generate lot of euphoria for bullish rallies. On Monday the scrip closed around 28. That price seems not feasible for fresh buying. It is better to take position after 28.90.

SNGPL

It appears that bearish trend of SNGPL is over and it may resume its bullish trend once again. On trading charts immediate resistance is expected at 23.80 and support at 22.90. Price level 22.90 is also pivot price for next direction. Stay long with stop-loss of 22.90.