Karachi, September 01, 2023 (PPI-OT): KSE-100 trading below lower band; Pullback likely

KSE-100 index witnessed another negative session to close at 45,002, down 1,242 points DoD. Volumes stood at 287mn shares versus 200mn shares traded previously. The index dropped below the 50-DMA which will now restrict upside at 45,650. Meanwhile, any downside will find support at yesterday's low of 44,460 level. The RSI and the MACD are heading down, supporting a bearish view. However, a short-term pullback cannot be ruled out as the index is trading below the lower Bollinger Band. We recommend investors to view any upside as an opportunity to 'Sell', with risk above the 50-DMA. The support and resistance are at 44,189 and 46,087 levels, respectively.

ISL: Dropped below the 200-DMA

Strategy: 'Sell on Strength' - targeting Rs42.15 and Rs40.35; stoploss at Rs43.97.

PSO: Slide to continue

Strategy: 'Sell on Strength' - targeting Rs102.45 and Rs98.80; stoploss at Rs111.56.