DFM index flirts with the 1720 mark

Dubai Financial Market (DFM) ended the week with the trading remaining sideways after a volatile session. The benchmark index closed at 1,689.45, up 15.76 points or 0.94 per cent, with all sectors posting gains on Thursday.

Union Properties, Takaful Emarat, Ekttitab Holding Company, Emirates NBD, Shuaa Capital were among the top gainers.

Analysts however believe the market is near the critical resistance level of 1720, which must be crossed to let the bulls take over.

“We must see a close above 1720 on DFMGI for the bullishness to continue,” Shiv Prakash, Head Technical Analyst, CapitalTA, a trading advisory firm on Indian, UAE, Forex, and commodity markets said.

He said DFMGI index traded sideways in the range of 20 points from the lows of 1669 to the highs of 1690.19 and closed up by 0.94 per cent at 1689.45 and is below the critical resistance levels of 1720.

The market volume touched around 116 million, worth close to Dh177 million of shares traded.

The market breadth was positive with 17 gainers against just 2 decliners.

“A close below the previous low of 1670 shall bring profit taking and investors are advised to remain stock specific. ARMX, DU, DIB, DIC and Air Arabia can be bought on dips near lower supports areas,” he said.

From the last few sessions, UPP is gaining momentum from lower supports and is exactly trading near the neckline resistance of Dh0.42. For bullishness to continue we must see a close above this for the next higher levels of Dh0.48. A close below Dh0.387 may prove negative again, he added.

Trading on Abu Dhabi Securities Exchange (ADX) also remained sideways, with the general index moving up slightly by 8.24 points to close at 2,639.33. All sectors except energy and real estate posted gains.
 

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