960429

MARKET BEHAVIOUR AND ANALYSIS

Index remains directionless

Sideways movement of the market during the last few sessions continued well on Wednesday after the trading resumed at the KSE at the end of the two days market closure. Stocks remained glued to their previous levels with mega-scrips making marginal gains. The KSE 100 finished 5 points higher at 1710 against the last closing 1705 and volume remained in the 25 million figure.

Dewan topped the list in terms of volume with some 9 million shares changing hands and finished Rs. 1.50 higher at Rs.50.25. PTC and Hub secured the second and third respectively and closed nominally higher. Over the retail counters, not much of activity was seen except for some isolated deals in the active scrips in the banking and energy sectors.

Players are hesitant about the next direction of the market and the market is ripe and full of suggestions about the budet prosposals. As such, most players have taken a back seat when it comes to riding on a rally. Local troubles aside, situation next door is far from satisfactory though Vajpayes has stopped down after just ten days of marriage with the crown. There are still no signs of uncertainty clearing in the near future.

Technically, it is facing immediate support and resistance at 1700 and 1735 respectively while major levels are expected around 1680 and 1750. At present immediate levels seems very important because in case of pentration, market is expected to move in the same direction for near term. However, breakout of support side may not strengthen bearish sentiment because overall sentiment the market is still positive.

ADAMJEE INSURANCE: The scrip opened on its previous closing and after testing its major resistance level of Rs. 145 bounced back and closed at Rs. 143.75. Yet the idea of sideways trading is still in favour, while pressure indicator is in favour that scrip has enough potential to brech its major resistance of Rs. 145 in Thursday's trading session. Breaking of this level will give the long-term trend.

LTV: The continuous sideways trading in a narrow range over a couple of sessions finally made a triangle formation. Techncally, this kind of information testifies that there will be a break in the near future. Trading range for Thursday is between Rs. 4.75 and 5.10 with a major support and resistance of Rs. 4.50 to Rs. 5.25.

CHERAT CEMENT: The downward channel which started on February 2, 96 is expected to continue in Thursday's trading session until it breaks the major support and resistance level of Rs. 32.00-34.00. Technically, the scrip is in a slightly oversold situation, while pressure indicators are showing that the scrip may try to test its important resistance level of Rs. 34.00 in near-term. Breaking of this downard channel will know the long-term direction. Trading range for Thursday is between Rs. 32.00 and Rs. 34.00.

MAPLE LEAF: The scrip is in slightly oversold situation while pressure indicator (Relative Strength Index) is in favour that it may give some more losses and try to test its next support level of Rs. 18.00 in the coming session. Trading range for Thursday is between Rs. 18.50 and Rs. 20.00.

ASKARI BANK: The scrip opened slightly lower against the previous closing and closed at the same day's opening at Rs. 33.75 on Wednesday trading session. So, the idea of sideways movement in a narrow range is expected to continue until it breaks its major support and resistance level of Rs. 33.00 to Rs. 36.00. Breaking of this level will give long-term trend.

PTC: After breaching its most important resistance level of Rs. 38.80, PTC closed well above from that price and now it appears that it may try to test next target of Rs. 42.00 very soon. On trading, charts, though, it is facing immediate next resistance at Rs. 39.80 but may not find any difficulty to breach that point. Overall sentiment of the share is positive therefore in the coming sessions it may remain positive. However, sharp rallies are least likely because of the absence of market making new rally on the floor.

DEWAN SALMAN FIBRRE: Dewan Salman succeeded in resisting sharp decline in price and bounced back for technical correction just after testing its key support level of Rs. 48.00. On trading charts, it is now facing key resistance around Rs. 52.40 while support is expected at Rs. 48.00. Short-term price following indicators are showing slightly oversold situation of the share. Therefore, we think that it may try to consolidate its values during the remaining days of the week. Overall outlook, however, will remain negative as long as it is below its major resistance level of Rs. 55.