Bulls dominated the Pakistan Stock Exchange as on trading session of July 28th, 2020 as KSE 100 index benchmark surged 1.06 percent or 406.11 points to close at 38,627.27. Today was the 2nd day of the week and 2nd consecutive bullish session too. Stock markets globally also remained green whereas WTI crude oil price dropped by 0.29 percent to $41.48 while Brent gained 0.16 percent to $43.97.

The global scenario also translated into Pakistan’s stock market as profit taking was witnessed in Exploration & Production. Banking sector turned out to be the performing sector as the State Bank of Pakistan has recently announced its decision to defer the monetary policy decision for next two months, creating wide sentiments of better profitability of banking stocks. Appreciation in index was also helped by cement sector, refinery, textile and chemical stocks.

KSE 100 index volume stood at 241.33 million shares as compared to 183.914 million shares yesterday. Overall market volumes stood at 394.27 million shares as compared to 288.09 million shares in the previous session.

Looking at the economic front, the State Bank of Pakistan announced that that USD 505.5 million has been received from the Work Bank. Net outflow of USD .83 million was recorded on July 27,2020 as per Special Convertible Rupee Accounts while net outflow of USD 75.09 million was recorded in equities.

PAEL remained the top traded stock for the day with total volume of 26.29 million shares and gained 0.78 percent to Rs. 31.03. MLCF stood second as hot favorite for day traders with volume of 26.16 million and surged 3.45 percent to Rs. 31.77. BOP jumped 3.02 percent to close at Rs. 9.56 with volume of 23.402 million. FFL almost capped and closed at Rs. 11.76 with volume of 23 million while PRL increased 5.21 percent to Rs. 13.73 to with volumes of 18.85 million shares.

Technical Analysis

KSE 100 index has reached RSI level of 82; on July 21st, 2020 the index reached the same RSI level and took correction by giving range bound trading session. The RSI level was lowered to value of 77 and it gained again. We also expect further range bound sessions so that RSI could settle to pick a further bullish momentum. The maximum RSI value we expect in near term is 88 as per last one year data. RSI depicts the index to overbought, range bound sessions and correction would be healthy for index to cross its one year high of 43,000 level. Among other indicators Ichimoku cloud, MACD and stochastic signal bullish trend for the Index

Relative Strength Index and Commodity Channel Index depict index in an overbought level for short term. Average True Range has increased from value of 410 to 427 depicting market is gradually moving toward bigger change.

Disclaimer: Stocksnequities is blog for Pakistan Stock Exchange. We simply give our analysis as per market data and it should not be taken as recommendation or a tip. Stocksnequities bears no responsibility for any profit or loss realized in stock market by our individual readers.

Umer Akhtar

Umer Akhtar

Umer Akhtar has an diverse experience in commercial & corporate banking. He has been associated with several websites covering NYSE and NASDAQ. Mr. Umer Akhtar holds a command over fundamental & technical analysis of stocks and capital markets.

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