Volatility was witnessed in Pakistan Stock Exchange today as most of the traders went for the profit taking. KSE 100 Index opened with a positive note with +224 points and it touched the intraday high with 312 points. Session almost remained flat the KSE 100 Index benchmark posted the mere gain of 0.15 percent or 61.51 points to close at 40,184.01 as on August 18th, 2020. The KSE 100 index traded volume stood at 295.63 million shares as compared to 346.72 million in previous session.

KSE all share index almost remained flat at 28,232.90 gaining 0.12 percent or 33.70 points. Overall total volume stood 458.79 million shares for the day as compared to 522.61 million shares yesterday.

Exploration and production & cement sector were the major contributors as bulls for the day whereas banking and fertilizer sectors were dominated by the bears. Stability in international crude oil prices helped in building investor’s confidence in oil sector.

Pakistan International Bulk Terminal PIBTL remained the top traded stock with volume of 35 million shares gaining 4.06 percent to close at Rs. 12.55. PRL also jumped 3.80 percent to close at Rs. 16.93 with volume of 27.55 million shares. DGKC and MLCF followed up gaining 5.56 percent to Rs. 111.60 and 2.59 percent to Rs. 36 with volumes of 26.74 million and 24.33 million shares respectively. HASCOL also remained among top traded with 18.37 million shares for the day but closed in red by 2.41 percent Rs. 16.20.

Technical Analysis

We have forecasting in our previous videos too, the KSE 100 index could remain range bound and also post some minor corrections as its Relative Strength Index RSI is on overbought levels. Not only RSI other indicators such as Commodity Channel Index CCI, Stochastic and MACD all show overbought levels. As per today’s figure, Stochastic and MACD also indicate a bit of future further profit taking or small correction. We forecast that the KSE 100 Index is still moving in strong bullish long term rally and we could see 100 Index surpassing 50k levels. However the benchmark KSE 100 index has to consolidate its RSI value around 60 to carry its further bullish momentum as per 1 year history as also explained in the video. Currently the RSI value stands at 72.

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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