Technical Forecast for KSE-100 For the Last Week of Oct, 2009

Technical Forecast for KSE-100
For the Last Week of Oct, 2009


New buyers welcome aboard
Bulls ready to take off
Ultimate Target
Bullish


By
Khalid Saifuddin
Saturday, October 24, 2009



Hi Folks:
Market seems little relaxed now; I can see some fresh breathing on last day of the week. Foreign investor’s net buy was USD 7,321,734 on Friday.
Tell you investors this week you get the clarification about the trend, though it is not established yet. Currently market got into the oversold range and usually here comes the new buy. The bullish power in traders will be coming in different phases.

• Trading above 9,180 will add confidence
• Trading above 9,395 will energize the bulls
• Closing above 9,340 on Monday will help the bulls for whole week
• Last but not the least closing over 9,700 this week will spread dancing bulls all over

Bears will get power back if the market closes below the last week low (which seems quite difficult)
Ongoing war, shooting events and explosions were the major cause of fear in the market. Incoming leverage product and positive development by Pakistani Army will minimize the fear in investors
The current statements from foreign diplomats will also help minimizing the bear power.


Key Levels
9,478
9,395
9,238
8,930
8,891
8,790



Fundamental View:
By Farkhunda Jabeen
I feel this is an excellent opportunity to have capital gains from stock investments; since equities at KSE are being traded at much discounted rates, forecasting the high returns in near future. Of course, this time span is sufficient for KSE stocks to reflect the upcoming growth prospects, as the positive events can set our economy in the direction for growth like shrinkage in Current Account Deficit, high foreign inflows and potential growth of service sector.
Pakistan economy, regarded of having a high growth potential, has been shifted to disturbance phase due to the recent law & order situation of the country. However, other economic and political ups-and-downs that can be traced back in the country’s history allow us not to lose hope when deciding of investing in the stocks of this high-potential country.



Foreign Investors Position
5th Oct to 9th Oct, 2009
Gross Buy Gross Sell
Rs 2,063,593,703 Rs 2,671,297,652
Net Sell Rs 2607,703,947
Net Sale USD $ 7,321,734



Weekly Candle
Open 9844.55
High 9859.73
Low 8974.85
Close 9150.85
Total Move 869.7
Lost 687.27
% Lost -6.98%



Decreasing volatility increasing hopes with some upcoming development



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Disclaimer: This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. We accept no liability whatsoever for any loss arising from any use of these levels. However the author DOES NOT GUARANTEES the accuracy of information provided on this report and is NOT RESPONSIBLE FOR ANY ERRORS AND/OR OMISSIONS.