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MARKET BEHAVIOUR AND ANALYSIS

Market remains dull as the uncertainty looms large

Nothing much changed in Monday's trade except that the fall was not as drastic as in the previous session, the KSE 100 index after falling by almost 12 points finished 9 points lower at 1536.14 against the overnight close of 1545.74, volumes remained depressed at 12 million shares. The rings for most of the day remained deserted except for some activity at the mega counters which after moving sideways managed to close almost at the overnight levels.

The violation of another support barrier at 1540 has insinuated fears whether the market is once again heading for a pre-run level of 1450.80, while from fundamentals side we don't expect any relief forthcoming whereas on technical grounds market appears to be in a neutral state the fears of another bear stampede may very well prove to be true in short term.

Despite moderate losses index's closing near its major (previous) support level 1540 indicates that market is still indecisive about its direction and reluctant to adopt any trend for short term. Therefore it appears that index may continue to trade sideways in coming sessions with this volume of trade. On trading charts now it is facing immediate support at 1530 while key resistance is expected at 1563.00. Penetration of either side will help to adopt next direction for near term. Technically market is neutral and if it succeeds to gain few points in next one or two days then we can expect further improvement otherwise next stop that market can see is expected at 1505.

IN THE LIMELIGHT

PTC

Lackluster trading with tight range of 40 paisa along with thin volume of trade suggest that at current movement of time players are not interested to give market direction and seems waiting for fresh development of fundamental factors. On trading charts scrip's inability to break its immediate support and resistance is showing lack of potential for the determination of short term direction. On Tuesday it is expected to face immediate support at 32.35 and overhead resistance at 32.80. Penetration of lower side will determine next target around 31.20 while above side may suggest next stop around 35.60. Pressure indicators are favouring the ideas that keeping itself directionless, PTC is increasing potential for breakout. At present best strategy seems to remain on sideline to avail best opportunity.

HUB POWER CO

Though the share opened below from its key support line 29.60 but its closing above that point seems pretty encouraging and it appears that at current movement of time this share is not interested to go for sharp losses and may prefer to remain directionless for couple of days. Technically, now it is facing immediate support at 29.50 and 29.20 while resistance is expected at 29.95. Losses beyond 29.20 are least likely while breakout of resistance line may determine next stop at 30.65.

NISHAT TEK

Nishat has been gradually falling with the passage of time and in its current wave it has lost over 10.00 as on Monday it touched the level of 15.25 after opening at 16.00, the volume traded has significantly came down showing the investors' reluctance to sell the scrip at a such a low level. Given the Hammer formation formed in Monday's trading coupled with slightly oversold situation of the scrip, Nishat Tek may resist further fall in the price and may go for a slight upward correction. On the downside the level of 15.00 is immediate support while on the upper side 18.25 is the strong resistance level.

ADAMJEE INSURANCE

On Monday with a turnover of 1000 shares the scrip after breaking its immediate support 127.00 as mentioned in our previous analysis closed at 125. Technically the scrip is slightly oversold while pressure indicators are showing that the scrip may give some more losses and try to test its major support level of 118 in coming session.

LTV

Trading in a narrow range between 4.30-4.40, the scrip was unable to break triangle formation. This kind of information testifies that there will be breakthrough in near future. On technical chart it is in a neutral zone and remain directionless, within a narrow trading range between 4.10-4.50. Breaking of major support and resistance of 4.00-5.00 will give the long term trend.

TRADING MAJOR MAJOR MARKET 30 DAYS 60 DAYS NET

SHARE TREND RANGE SUPPORT RESISTANCE SITUATION M. AVG M. AVG CLOSE CHANGE

KSE INDEX SIDEWAYS 1530-1555 1506.00 1563.00 NEUTRAL 1691.00 1640.00 1539.00 -6.69

LTV SIDEWAYS 4.15-4.75 4.00 5.00 NEUTRAL 4.60 4.65 4.35 0.05

METROLIFE SIDEWAYS 9.50-10.50 9.00 11.00 NEUTRAL 11.00 11.55 9.85 0.10

PTC CONSOLIDATIVE 32.00-33.00 31.60 36.30 NEUTRAL 34.40 35.20 32.65 0.15

HONDA ATLAS SIDEWAYS 24.00-25.25 24.00 26.00 NEUTRAL 25.85 28.80 25.00 -0.65

IBRAHIM FIBRE SLIGHTLY UP 7.00-7.50 7.00 8.00 NEUTRAL 7.65 7.83 7.10 0.00

HUB CONSOLIDATIVE 29.40-30.00 29.20 30.60 NEUTRAL 28.40 29.00 29.65 0.05