20000208

KSE-100 INDEX

The market closed sideways in a lackluster session mainly because of lack of players interest at higher rates. Though it opened at positive note as there was buying interest in PTCL, Hubco and PSO but position squaring forced to close without any notable change in prices.

Technically, though market closed around its day high point yet not confirming the resumption of significant bullish rallies.

On trading charts it may find important point at 1820 which would be major support or resistance level depending its opening behaviour. In case of positive opening, one can consider such point as intra-day support level. On the other hand 1820 may be stop out point for short positions.

PTCL

A "hanging man" formation on daily trading charts indicates that PTCL may need aggressive buying to push the scrip in bullish region. On the other hand it may come down to generate momentum for upward rallies. On first day of new account period it opened at positive note, yet remained unable to drift further high due to continuous selling at higher rates. Nevertheless, late buying helped it to closed around its day high.

Technically, important support for PTCL is Rs 31.20, which is also pivot price for next direction. Ability to hold above may favours more gains in near term. However, next bullish trend is expected after penetration of Rs 32.50, highest price that PTCL recorded during previous rally. Upto that price there are chance of volatile trading and intra-day players may find limited room to trade frequently in the market. However, after Rs 32.50 one can go long for significant gains in near to medium term. Stay long with stop loss of Rs 30.90

HUBCO

In line with other heavy weights , Hubco also succeeded to consolidate its values. But its next direction is still mixed. On Monday it opened at dull note remained direction less during first hour but fresh buying , specially from the side of major players, helped it to consolidate its values.

On trading charts immediate support is expected at Rs 27.40 and resistance at Rs 28.05. Major resistance is expected at Rs 28.65, next direction will depend on penetration of that price. At present Hubco is showing mixed behaviour. It is better to take position after solid fundamental development.

ADAMJEE INSURANCE

Adamjee Insurance continues to trade sideways on Monday but general out look is still positive. Technically, after penetration of its psychological barrier of 100 rupees it started to consolidate its values in a tight range of three rupees. From lower side it is considering important support at Rs 99.00 and resistance at Rs 104.00. In near term if it succeeds to stay above from three digits then one can expect sharp rallies from existing prices. Technically, it is still in overbought region but consolidation in prices may help it to neutralize its overbought conditions. Pivot price for Tuesday's trading is Rs 101.50, ability to stay above may favours more gains in near term.