Trading session remained volatile at Pakistan Stock Exchange PSX as KSE 100 Index benchmark gained 254 points in intraday trading while lost 39.66 points and closed almost flat by 0.13 percent or 54.71 points to 41,110.93 points as on August 31st, 2020.

On the economic front, Sensitive Price Index (SPI) was reported with a decrease of 0.14 percent as compared to last week by Pakistan Bureau of Statistics. The decrease in SPI was mainly due to food items, however if compare it with last year, SPI has increased drastically by 8.39 percent.

Internationally stock markets ended in green, crude oil prices were also dominated by bulls as WTI crude oil price gained 1.33 percent to $43.54 while Brent crude oil price jumped 1.46 percent to $ 46.48.

KSE All share index also reported a mere gain of 0.53 percent or 153.15 points to 28,960.99 with total volume of 451.73 million shares as compared to 238.56 million shares in last trading session. KSE 100 index also reported improvement in its volume of 212.35 million shares today as compared to volume of 109.41 million shares on Friday.
Oil & gas exploration, food & personal care product, tobacco and cement were among the sectors which pushed the index towards green while commercial banks and fertilizer sectors remained bearish for today.

Bank Islami Pakistan BIPL was the top traded stock of the day with total volume of 40.92 million shares and it surged 11.01 percent to close at Rs. 9.98. TRG and right issue of Power Cement POWERR1 dropped 6.98 percent and 66.67 percent to close at Rs. 58.80 and Rs. 0.05 with volumes of 40.07 and 32.03 million shares respectively. Pakistan Refinery Limited PRL jumped 7.48 percent to close at Rs. 20.27 with overall volume of 24.01 million shares followed by HASCOL which gained 1.92 percent to close at Rs. 17 with traded volume of 22.11 million shares.

Technical Analysis

KSE 100 index is maintaining its relative strength index RSI value of 74 from last 2-3 trading sessions. Looking at last bullish rally in history which started in September 2019, we look at the similar pattern when RSI touched the high of 88 and later due to correction in index went down to value of 63. In previous bullish rally of 2019 the RSI remained range bound within the value of 72-78 for 2 weeks until it adjusted below the value of 60.

If we assume that index will follow the same pattern, we expect the index to remain range bound until market can move in another bullish momentum with strength. As explained in the video, we expect market will remain range bound within the 40,000-42000 for next two weeks. Average true range stands at 472 points as of today. Ichimoku cloud indicates a bullish trend while MACD, RSI, Stochastic and Commodity Channel Index are categorized as neutral after today’s session.

For tomorrow first support level is at 40,981, 2nd at 40,851 and 3rd at 40,868 while 1st resistance can be seen at 41,275, 2nd at 41,440 and 3rd at 41,570.