Karachi, May 15, 2012 (PPI-OT): Neutralized Pressure —Minor Recovery Likely
The benchmark KSE vacillated within a band of 145 points (14164~14310) yesterday, and at the bell it concluded flat at 14228 level, with a turnover of mere 77.57mn shares (decreased 60.3%) against 195.72mn shares exchanged on Friday.
According to AKD Securities, appearance of a Doji shows that the selling pressure has neutralized around 14232~14120 support area. This coupled with contraction in volume could allow a relief towards 14482~14567 levels, where weak sell stance would be suggestible.
Weekly overbought momentum and bearish crossover on STS are concerns for prolonged rally. Therefore, investors who are following the general up-trend are suggested to trade in selective stocks and avoid committing aggressive positions.
Preferred Stocks: PSO, HUBC, LOTPTA and PTC.