• After a brief and historic parabolic move by the benchmark index there is an interesting development worth noting. The KSE-100 Index has recently formed a Doji candle on the weekly chart. During the week, the market remained volatile, with a high and low of 67,093 and 64,427 points, respectively. The weekly closing at 66,130 points reflected a marginal 0.14% Week-on-Week decrease. Trading volumes remained historically high, reaching 3.15 billion shares, indicating continued active participation in the market.
• The appearance of a Doji candle often indicates market indecision, suggesting a balance between bullish and bearish forces. This could potentially signal a temporary pause in the prevailing trend or a potential reversal. Given the recent all-time high and the subsequent formation of the Doji candle with historic high volumes, it’s essential for us to closely monitor the market dynamics in the coming sessions.
• Based on the market analysis, the recommendation is to exercise caution stance at the moment and use strict stop loss on your long positions.
KSE100 – Daily Chart
• On daily timeframe, the market remained volatile throughout the last week, posted a wide range profit taking candle the market defined its consolidation range as (64,400-67,000), individual sectors & stocks performed well during this period; Going forward, it seems that the market will consolidate in the said range (64,400-67,000) breakout from 67,000 level would open upside targets 67,300-67,800 & 68,500-69,000 level. Whereby breakdown below 64400 level would trigger short term correction in the market with downside targets 63,800-63,200 & 61,500-60,300 levels initially.
• At the moment we encourage a cautious approach and vigilant monitoring of the market conditions & advise traders to take fresh trading positions based on individual stocks’ technical levels & follow strictly trailing stop-loss strategy with risk defined closing below 64,400 level.
Top picks of the week
Loads Limited – (LOADS)
LOADS: This has broke the price structure with increase volume and is all set for a bullish move. MACD is about generate a positive crossover above zero line indicating momentum`s strength which is supporting our bullish stance on the stock.
• Buy in a range 9.80 – 10.20 & add more on breakout above 10.50 with risk defined on closing below 8.70 level (stop loss).
• Upside Targets : 14-15 levels, closing above these levels could open way for 18-20 levels.
Courtesy – BMA Research