Karachi, June 19, 2013 (PPI-OT): Short‐Term View: Benchmark KSE interrupted immediate uptrend below 22,100 level yesterday, and eventually retraced 50 percent of 20,917 to 22,881 ascent at 21,899 level —coinciding with the 21‐day average (21,893).
This minute correction led largely by OGDC and MCB has eased the 14‐day RSI to middle readings. Chances are that buying would resurface to support initial recovery towards 22,449 level. On the contrary, in case of a relapse below yesterday’s low (21,846), the index can slide towards the deeper 61.8% retracement at 21,667 level, which in AKD Securities Equity Research’s opinion would be the last line of defense for the short‐term bulls.
Buying Setups (Immediate Term)
Buy POL with closing risk below 495
Buy PPL with closing risk below 211
Buy FFC with closing risk below 108.67
Buy FFBL with closing risk below 38.80
Buy ENGRO with closing risk below 137.45
Buy NML with closing risk below 99.69
Buy PTC with closing risk below 21.45
General View: All the ingredients (momentum, volume and market internals) for continuation of an intermediate uptrend remain intact. On a larger degree, AKD Securities see the primary impulse striding for 22,740 — 23,682 levels, which can also extend towards 25,000 level. To ride this wave, investors should keep enough room (buying power) for correction up to 20,000 — 19,500 levels —coinciding with the cloud support. AKD Securities find strong potential in ENGRO, PSO, PTC, SNGP, MARI, EPCL, AICL, and BOP.