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INSIGHT

MARKET BEHAVIOUR AND ANALYSIS

Prices take a further dip

KSE Index opened on a weak note and fell by almost 25 points breaking the support barrier of 1550. till mid trading, however the values improved but only a bit in the later half of the session and the index closed 17.34 points lower at 1553 against the weekend closing of 1573. By the previous standard it was a pretty dull day as the total volume was recorded at just around 32 million shares proving no match for the turnover of 70 million shares in the previous trade.

Share prices across the front moved in a fairly narrow range and no usual hustle and bustle was evident at the retail and speculative counters as no one dared to take a heavy position in view of the haunting uncertainty. Among the mega scrips Hub turned out to be the mega loser whose price fell by 1.15 to close at 28.55.

Political sentiments have once again flared up and the investors have become very cautious after the strike call in Lahore the other day, most are waiting with a baited breath as to what happens next on the political front. The coming few days should prove to be crucial for the market as any negative or opposite development may set the markets next direction.

Technically market is still showing slight room to improve it's positions and is expected that if it succeeds to hold it's values above 1520 it may bounce back for upward movement. Failure, on the other hand, is expected to create panic among the players and they may push index towards 1435. On trading charts immediate resistance is expected at 1563 and support at 1535.

These two levels are very important in the sense that penetration of either side will determine near term direction.

IN THE LIMELIGHT

LUCKY CEMENT

The share is technically oversold and is expected to change it's direction for slight recovery in it's prices in coming sessions. On trading charts immediate resistance is expected at 16.90 and then at 17.40. Price level of 17.40 is also medium term trend line therefore penetration may flourish few more rallies towards 19.80.

HUB POWER CO

Hub held well at it's immediate support level, but ideas about it's directionless trading are still intact as long as it is below the resistance level of 29.50. Technically 28.20 seems very important and share is expected to bounce back from that price. Penetration may determine next stop around 26.20-trend line support of previous 20 weeks.

FAUJI FERTILIZER

Though FFC succeeds to recover early losses but is still not clear about it's direction. Technically price level of 76.30 seems very important and penetration may encourage further gains. Pressure indicators, however, are not favouring rallies beyond 76.30 and the share is expected to change its direction for downward movement. Key support is expected around 72.30.

HONDA ATLAS CAR

The continuous movement in a narrow range over a couple of trading session, the scrip finally made a triangle formation on technical chart. This kind of formation indicates that there will be a breakthrough in coming session. Technically it is in a neutral zone, while short term trend is still sideways in a narrow range between the major support and resistance of 24.00 and 26.50. Breaking of this level will give the long term trend.

LTV

Monday the scrip after testing its immediate support of 4.25, bounced back and closed at 4.50. Technically the scrip is in neutral situation and enough potential to cover some losses and try to breach its important resistance of 5.00. For today, the trading range is in between 4.00 and 5.00 which is also considered the major support and resistance.

ICI PAKISTAN

ICI after opening at 56.00 moved slightly down towards 55.50 and finally closed at 56.00. The sideways movement being typical of the scrip was expected, and is likely to continue for some more session before the scrip gives any sharp rally. The neutral market situation is fit to support the current directionless range bound movement in the range of 55.00-58.70 until the scrip enters oversold zone. The trading range for Monday is 55.50-56.45.

TRADING MAJOR MAJOR MARKET 30 DAYS 50 DAYS NET

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

KSE INDEX SIDEWAYS 1530-1563 1520.00 1575.00 NEUTRAL 1673.00 1634.00 1554.66 -17.34

PTC CONSOLIDATIVE 32.00-33.50 30.40 34.50 NEUTRAL 36.40 34.50 32.35 -1.05

HUB CO CONSOLIDATIVE 28.20-29.10 26.50 30.50 NEUTRAL 28.85 28.45 28.60 -0.75

LUCKY CONSOLIDATIVE 16.00-16.90 15.50 18.50 S. OVERSOLD 20.50 20.96 16.35 -0.05

F. FERTILIZER CONSOLIDATIVE 73.00-76.30 72.00 78.500 NEUTRAL 72.10 75.70 74.10 -0.50

FFC. J CONSOLIDATIVE 15.50-16.85 15.00 17.50 NEUTRAL 16.00 15.50 15.90