Karachi, December 09, 2021 (PPI-OT): KSE-100; Recovery trend remains intact

The KSE-100 index witnessed a volatile session to close at 43,847 (-7 points). Volumes stood at 233mn shares versus 229mn shares traded previously. The index is expected to revisit 43,653 (yesterday’s low) where a fall below that level will target 42,752. However, any upside will face resistance in the range of 44,100-44,365 where a break above these levels will continue the recovery trend with 44,608 and 45,255 as the upside targets. The Stochastic Oscillator has improved, while the RSI has shown weakness, signalling no clear trading view. We recommend investors to ‘Buy on dips’, with risk defined below 43,653. The support and resistance are at 43,620 and 44,106, respectively.

DGKC: Reversal formation

Strategy: ‘Buy on dips’ – targeting Rs83.83; stoploss at Rs73.11.

OGDC: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs93.06; stoploss at Rs83.12.