TASI Trend Score

TASI rose for the second day in a row and added 17.70 points to close the day at 7104.50. Though the Index is trapped in a narrow band of 7115-7015 for the past few days, the undertone is firm and there is a very little chance of a down move in the near term.

Today TASI may make an attempt to breakout from this range on the upside mainly in sympathy with the rally in global markets. If that happens, expect the Index to test its next major resistance around 7500 level. Near term support is placed at 7050.

See the Trend Score table for swing recommendations and intraday ranges.

KSE-100 Index Trend Score

TASI Trend Score

Amid falling momentum indicators TASI is looking firm on all three counts (short, medium and long). Near term support of TASI is at 7000 while major resistance is at 7200.

Today, we expect the Index to trend lower and test its near term psychological support at 7050. Breach of this support on the downside may extend the slide towards 7000 levels.

For short term swing recommendations please see the Trend Score table.

KSE-100 Index Trend Score

The KSE-100 Index is showing strength on all three counts; however, lack of velocity is indicating that the Index may pullback a little due to profit booking on higher levels. Near term support is placed at 15139 levels breach of which may extend the downtrend towards 15000. Major resistance level is placed at 15500.

For short term swing recommendations please see the Trend Score table

NIFTY Trend Score

NIFTY is looking set to test 5600 level after crossing 5350 and 5400 level during the last couple of days. Major action was confined to CNX IT (Trend Score -3) as INFY (Trend Score -13) kept on rising. RELIANCE (Trend Score +17), another bellwether stock, is also looking hot. 

Till now, the Index was rising with a slow pace, however, after clearing major hurdles at 5350 and 5400, we expect the NIFTY (Trend Score +17) to move up with high velocity and test 5600 level.

Banking sector which constitutes around 20% of the NIFTY market cap is badly underperforming the Index mainly due to the underperformance of the PSU banks. We believe, all PSU banks are deeply oversold and time is ripe for the SBIN (Trend Score -17), BANKBARODA (-Trend Score 13), PNB (Trend Score -17) and other smaller PSU bank stocks to fill the underperformance gap. We recommend investors to accumulate public sector banking stocks on weakness.

 

KSE-100 Index Trend Score

Momentum is back as the Index climbed 150 points to end the day at 14911.97. Leadership came from Oil & Gas sector stocks while banking stocks were in the negative territory. 

Today, after a soft opening, we expect the Index to maintain the uptrend and challenge its psychological resistance at 15000. Major support is at 14700.

On the last trading day, the swing trading performed poorly mainly due to the fact that majority of the stock (17 out of 27) were in the sell mode and the market shot up. Hopefully, this will be corrected today as the 17 out of 27 scrips are showing buy ratings. We recommend investors to build positions in the stocks with buy ratings on the dips.

NIFTY Trend Score

Amid narrow ranges, NIFTY managed to eke out a positive return for the day and closed on the highest level since 3^rd April 2012. Around the close, the Index did its best to breach 5350 resistance but lack of momentum took its toll and the Index closed the day at 5347.90, up 27.50 points. Major positive contribution came from DLF (Trend Score -13), HDFC (Trend Score 17) and RELINFRA (Trend Score -13). All three stocks rose more than 3%. 

Going forward, we expect more gains as the Index has formed a good base above 5300 support and is looking set to go beyond 5350 level. As mentioned earlier, post 5350 next target is 5600 level.

Major gains are likely in the stocks with positive Trend Score. We advice investors to maintain passive long positions in the stock with positive Trend Score till the moving average setup indicate otherwise. Stocks with negative Trend Score are ideal candidates for short covering and may post sharp gains once the Index start showing upward momentum.

Yesterday, the Swing Trading recommendations performed modestly. Out of the 55 stocks and indices we cover, 35 were in the buy mode and posted returns in the range of +0.58% while 20 were in the sell mode and average returns were +0.90% (loss for short sellers).

Today, 40 stocks are showing buy signals while 20 are in the sell mode. We expect sharp gains in the stocks with buy ratings once the Index manages to stabilize above 5350 level today. Failure to do so may result in some profit booking and we may see below par returns.

NIFTY Trend Score

On the last trading day, the Index maintained its level above 5300. Though the range was narrow but undertone was firm. IT sector was the major positive contributor as INFY (Trend Score -13) and TCS (Trend Score +17) gained ground. Other heavy weights such as ITC (Trend Score Trend Score +17) and RELIANCE (Trend Score -3) were also in the positive territory.

The Index is getting stiff resistance at 5350 level despite strong flows. We maintain our positive stance on the market and expect it to go beyond 5350 level as long as its major support at 5200 is intact.

From today onwards, the Trend Score table will incorporate the “Swing Trading” recommendations along with the “Long Term Trending Profile” of the stocks.

The reason for including the “Swing Trading” is to make the stock table more action oriented. Historically, the average swing lasts for at least 3 to 5 days and generates 5% to 10% returns. The “Swing Trading” recommendations will be useful to both active traders and passive long term traders to ascertain the short term moves of the stock. The detailed explanation can be accessed by clicking this link.

Tadawul All Shares Trend Score

Tadawul All Share Index Trend Score

The Tadawul All Share Index is showing good strength and is looking set to challenge psychological resistance level at 7000 today. Expect rapid rise in prices once it crosses 7000 resistance level. As indicated earlier, the near term target is at 7150 while nearest support is at 6900.

KSE-100 Index Trend Score

The KSE-100 Index lost 1.53 points to close the day at 14672. We maintain our positive stance on the market in general and expect it to move beyond 14700 level very soon. Major support is at 14500 level. Buy on dips in stocks with a positive Trend Score. See the table for details.

NIFTY Trend Score

The Index cleared the 5300 resistance with ease to finish the day at 5336. NIFTY is well poised to test its next major resistance at 5350 breach of which can add fuel to the fire and we may see brisk gains towards 5600 level. 

Major stocks in the metal sector are in the sell zone on all three counts as the Trend Score of HINDALCO, STER and TATASTEEL is deep in the negative territory. All these stocks are deeply oversold and exhibiting a sideways trend for an extended period. There is no specific reason to buy this underperforming space at current levels but improvement in general market conditions may trigger short covering rallies.

Traders with short position should cover the positions on weakness while long only swing traders should accumulate the stocks on weakness with a view to book gains after a rise of 5% to 10% in prices. Passive long term investors should wait for the moving average setup to generate a buy signal.

Tadawul All Share Index Trend Score

In line with our expectations, the Tadawul All Share Index (TASI) maintained its price around 6950 level. In the near term, we expect the Index to maintain the uptrend and test 7150 level before profit booking pulls it down a bit. Minor support level is at 6900.