Karachi, August 02, 2023 (PPI-OT): KSE-100; Temporarily pause is likely in bullish trend

KSE-100 index after making a high of 48,442 slid to close at 48,231, up 196 points DoD. Volumes stood at 554mn shares versus 492mn shares traded previously. The index is likely to re-test resistance at 48,442 where a break above this level will target 48,982. However, any downside will find support in the range of 47,780-48,010 levels. The RSI and the Stochastic Oscillator are overbought, signaling a short term correction is due. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 48,005 and 48,449 levels, respectively.

ENGRO: Recovery likely

Strategy: 'Buy on dips' - targeting Rs261.78 and Rs266.93; stoploss at Rs254.25.

DGKC: Upside to continue

Strategy: 'Buy on dips' - targeting Rs58.97 and Rs61.11; stoploss at Rs56.40.