AKD Quotidian about — Depicting Exhaustion In Downwards Pressure

Karachi, July 01, 2013 (PPI-OT): Short‐Term: Previous five diminutive candles with falling volume depict exhaustion in downwards pressure as the index approaches 20,783 level —38.2% retracement of 17,388 to 22,881 ascend.

According to AKD Securities, recovery through 21,235 would produce an upwards retracement towards 21,525 — 21,702 levels. Reduce exposure at such strength, while needing a convincing break above 22,312 to go bullish.

General View: Recent shift in demand and supply imbalance in favour of bears has confirmed an intermediate restriction at 22,881 level —coinciding with our intermediate target of 22,740 — 23,682 levels. This can produce a bearish reversal towards 20,363 — 20,134 levels —50% retracement of 17,388 to 22,881 ascend.

Additional pressure would expose the deeper 61.8% retracement at 19,486 level. Intermediate corrective theme would remain valid till the end of July’2013, with max downside possibility for 18,806 level. On a larger degree, we still see the primary impulse striding for 25,000 level. However, to ride this wave, investors should keep enough room (buying power) for intermediate correction up to 19,500 — 18,800 levels —coinciding with the cloud support. We find strong potential in ENGRO, PSO, PTC, SNGP, MARI, NRL, EPCL, and BOP.