KSE Startegy, Next Week.

As expected and mentioned in my earlier post (17th Nov) that the market will find support at 6,656 levels. It did find support, though, at a li'l bit higher level  - 6,662.90 (7 points diff). The Index bounced back today and for the entire day the market traded in the positive territory, leaving no room for bears to over power bulls.

The current 14-days RSI is at 22, still signaling that the market is still trading in over sold zone - expect a bounce.

I feel the market will move up in the coming week, and expect the Blue Chips to ride the run-up. The Index can run-up to 6,990 in the coming days before a pause.

Technically, the Index immediate Support level is 6,656 if this is broken the next level will be 6,488.

Volatility continued in the stock markets entire week. The reason for this swings vary, from the Grilling of the PM (this will as a spoil sport till 8th Dec), additionally US has also files case against Agility.

Given this volatile, one should develop strategies to handle the current market situation. What I have seen is that, market volatility normally causes investors to lose confidence in stock investments and they tend to stay away. Yet, history has shown that market exposure, (special when the markets are down) is the path to higher returns. One should know the fact that stocks have provided excellent risk and inflation-adjusted returns over many years.

In the current market scenario, investors should follow a 'buy on dips' philosophy.

Finally, I’ll repeat what i had mentioned in my earlier post "We all know that predicting markets isn't simple nor someone possibly knows when the market will hit the bottom, but at this stage investors should start to deploy small amounts and only long-term funds into the market, as it will help in riding out short-term volatility and one can take the advantage of the downfall."

Happy Investing!!!