FKLI Commentary on 19/05/09

FKLI May futures contract fall 6.5 point lower to close at 1003.5 as compare to previous trading session with total 7,932 lots traded in the market. FKLI rebound in the 2nd trading session due to strong regional indices performance during the trading hours.

Technically, FKLI seems stopped below the downtrend channel resistance trend line at 1007 regions; 38.1% Fibonacci retrace levels. We expect FKLI would trade lower in the coming trading session provided resistance levels at 1007 and 1015 were not violated in the coming trading session. Traders were advice to hold short position in the coming trading session while be cautious around support levels 996 and 980 regions.