SECTOR WISE ANALYSIS | UPCOMING WEEK 12th APRIL TO 16th APRIL 2021

We have reviewed the different sector companies – which are highly tradeable and big name of the industry.

In upcoming week – The holy month of Ramadan will be started and we observed historically that market timings shrinks and activity gets slowed down during the entire month. Therefore, we are not eyeing hefty rally in the market during the entire month and generally at the end of month investors off-load their exposure to available liquidity, although this time due to Covid 19 this activity will also be slow. 

KSE100 index important support level 44,700 and upside risk near 45,200 – 300 zone where market slightly gets pressure due to several times tested and revert from the same level. Whereas, market momentum indicators on technical ground seems market will continue its uptrend however one upside risk which is a key trigger for market on-going rally that’s rising Covid 19 cases in the Punjab region which may force Govt. to impose lock down (either partial OR full to curb the pressure). 

“Other things quite obvious for market that economic condition not too much bad which turns investors behavior into bearish sentiments.” 


Sector Wise Analysis – 12th April to 16th April 2021


CEMENTS

LUCK | crucial area for this company near 855 – if hold this level then you can hold your long position otherwise take profit and side line re-buying zone near 825 – 830 level with stop loss below 825 (closing basis).

DGKC | it has shown a breakout from the resistance area of 125 while still upside price rejection is a key concern. Resistance likely to stand near 128 (profit-taking area if any sign of weakness observe during the market hours then at least partial position off-load would be wise decision). Closing above 128 would open the room for 135 – 137 zone.

PIOC | indecisive candle with lower volumes compared to last couple of session seems exhaustion of bull run. Therefore, keep your excitement aside to jump into this company until its trading below 132.70 (good closing level +133 with volumes above 2mn).

DCL | good support near 9.50 – 60 zone. Keep your eye on it, if that’s sustaining this area then you can investor at least next 6-months time where upside target would be near 12. Its roughly ~25% of return in a 6-months period.

CHCC | follow the same trend as LUCK & DGKC therefore, if sustain above 169 then you can easily make long entry and hold your position so tightly.


ENGINEERING

ISL | take profit and side line till this company is trading below 94.89 zone (which is considered as strong resistance). In the last week stock has performed so well and now its time to get some rest at current area then start a fresh rally. Rebuying level would be near 87 – 88 zone while stop loss must be below 86 (closing basis).

INIL | same story with this company indecisive candle formation on daily chart in outgoing week. Price trading near 220 However, immediate support is the same level.

ASTL | 38 to 40 would be a very strong support level for this company, therefore, keep this stock on your watch list to get early entry in this stock to make more money. Stock showed a breakout on 8th April 2021, while on the last day of outgoing week  meagerly declined to closed at 42.06 zone.

MUGHAL | follow the similar trend while upside price rejection on the last day of the week, raised many questions regarding the upside risk. Therefore, long entry (safe entry) would be one if stock price level increase from 101.70 zone. Otherwise, it will remain under pressure.


TECHNOLOGY

TRG | one of the most important stock of our market which carry the emotions of thousands of investors. This stock has trading at 159.61 and in the last week earned approx. 23.39 OR 17.17% of return. Most important upside resistance 164 followed by 169 where from possible chances of decline in this stock. Therefore, we won’t recommend to put fresh capital once it completed corrected wave. Near 145 – 147 would be initial downside forecast for this company.

NETSOL | important level for resistance near 178 – 180 zone where from this company likely to take pressure and declined. Be-careful in making fresh position at said area.

SYS | probable upside near 480 zone and current standing at 457.45 level.


OIL & GAS EXPLORATION

OGDC | if it would not close above from 100 level within next 2-days then we would expect more downside likely to come which push stock price below 80 level.

PPL | if stays above from 84 then you can take risk with strict stop loss below 83 zone otherwise just stay away.

POL | among other players of this industry, this stock has performed so well – in line with market move. Therefore, hold this 384 zone after that you can book profit and wait for another re-entry level.


OIL & GAS MARKETING COMPANIES

PSO | 221 is the key support area for this company. If breaks below then we can see downside near 203 where you can plan your re-buying with strict stop loss below 2 – 3 rupees. The upside potential is quite huge – if economy come to normalize level (which is impossible in near term) however for longer term perspective this company would have strong potential to go upto 280 – 300 zone.

HASCOL | is a dead company (fundamental grounds) while still technical movement observed into this company. Current price level is 10.03 – therefore we believe that risk can be taken for longer term perspective. Just pour your money into this stock and leave it for next 2 – 3 years period.

SNGP | also a another stock which is getting ready to fly from the current area. This stock was in ranging from 38 – 42 since last couple of week. We believe its in consolidation phase and once completed then you won’t get it, therefore, take risk at current level and hold your position till its trading above from 36 zone.


COMMERCIAL BANKING

MEBL | stay away from the bank, its trading in the consolidation while momentum is getting slower which is showing that it would soon come down to level of 98 – 100 zone while currently trading at 108.91 level.

BAHL | currently trading in the downtrend however important support zone near 60 – 62 zone if sustain then you can think of buying otherwise not.


FERTILIZER

ENGRO | stay away from the fresh buying while “Sell on Strength” strategy would be used to off-load your position.

FATIMA | trending into consolidation phase therefore, we won’t suggest you to jump with fresh buying. Current rate 29.02 & rebuying area near 28.20 – 28.30 zone.

EFERT | sustaining the downside near 61 – 62.20 zone therefore, risk can be taken with strict stop loss below 60 (closing basis). Upside is quite healthy upto 66 – 67 zone.


OTHERS

UNITY | key resistance near 31 – 32 zone. Once its closed above from said area then we’ll see another rally which takes up the price near 40 level. However, closing below 31 – 32 zone would limit the upside and open downside level.

GGL | we observed a downside price rejection in last trading session however its still closed below from the high 28.66. Therefore, 50/50 chances to continue upward rally. While we believe if it stays below 28.66 then you need to book profit and stay sideline.

TELE | attempted to break the previous high 8.63 and made a new high of 8.70. However, closing came down to 8.45 with huge volume. This is indicating that this trend will likely to hold the ground and continue.


Disclaimer: Performance subject to market risk.

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