Key market themes for today

The index opened on a slightly positive note and experienced a bearish session amidst low volumes. The local bourse posted a low of 759pts and recorded a loss of 648pts to settle at 43,829pts level.

Trading volumes slightly increased by 89Mn shares compared with previous day’s tally of 66Mn shares.

Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 30 trading sessions ago. Since the MACD crossed its moving average, the local bourse has decreased 7.47%, and has ranged from a high of 47,629 to a low of 43,718.

Daily parabolic SAR (Stop & Reverse) signal generated during last trading session which hints that the index could face bearish sessions in near term.

The chart formation reflects that the index could find initial support near 43,500. A break below aforementioned support could drag the index level towards 43,300 and 43,000 area.

Alternatively, the index seem to face resistance around 44,000pts level. A break from the same could add further gains towards 44,300 and 44,600 area.

Among the strength indicators, daily RSI (14) stands at 29.3.

It is recommended to trade with a cautious approach. Short term bounces are expected and should be used to reduce buying positions.

Key trading ideas for the day

NML: The scrip has been consolidating in a short range. Current formation depicts that NML could exit from thin range. Strength indicators are indicating that NML might surge in near term.

PPL: has been hovering near the bottom of the range. Positions should be accumulated on weakness in PPL. A buying signal generated by stochastic oscillator.

TELE: The scrip closed on a negative note during last trading session. Daily parabolic SAR (Stop & Reverse) is appearing below the current level of the scrip. TELE is approaching towards 100-SMA where it seems to find support.

Courtesy – BMA Capital Management Ltd.