Pakistan Equity Market | Outlook for 29th March Onwards

In the last trading session we witnessed strong sell of pressure – though going forward we are expecting pressure likely to continue..

We believe that market will face pressure with respect to ongoing political turbulence will deter the investors/traders sentiments and market will likely to perform sluggish. On the other hand rising Covid_19 cases and partial lockdown in different cities fueling the concerns over govt. strategies to curb this pressure.

As per IMF demand Govt. has showed clear intentions to make State Bank of Pakistan (SBP) – Autonomous body which will be free from any political influence and make rational & sound decision within the capacity of international practices. However, oppositions took this matter on a negative note and start chanting that this would have a most serious negative impact on overall economy. Therefore, we are viewing that market will also get some heat from this stance of opposition and may investors pull-out money to avoid any capital loss from this fear.

Furthermore, IMF also required to withdraw corporate tax exemptions from several corporates to generate a tax cashflows going forward – as per media sources nearly PkR 70 –  140bn cashflows generation. In addition to that, Govt. also giving free hand to state enterprises from ministries influences to make them work efficiency without any pressure.

Economic front will remain same and there would not be any hefty change likely to happen – the predictive trend of Pakistan Equity Market would be bearish to neutral, though we suggest you to “Sell on Strength” would be viable decision.

Technical Stance | Market seems weak in upcoming week (29th March 2021 to 2nd April 2021). We are with the view of “Sell on Strength” in order to protect your capital. On daily chart market couldn’t able to breakout the level of 46,000 mark. However, closing came in at 45,521.63 which is lower from the day (25-03-2021) low 45,645.81. Weak candle with hefty volumes on a downtrend hinting that trend would be bearish unless market breakout the 46,000 level and sustain above from this level. Immediate support hovering near 43,900 – 44,400 zone on weekly grounds. If market sustain above from the said level then that would be a good level of buying in the market else you can just wait and watch to recovery your losses. Market immediate resistance near 45,800 or previous high (46,000) zone.

Disclaimer: This article is only information purpose only. 

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