Karachi, August 04, 2021 (PPI-OT): KSE-100; 50-DMA breakout confirmation is required

The KSE-100 index extended the gain to close at 47,758, up 305 points. Volumes stood at 443mn shares versus 252mn shares traded previously. The index has given a break above the 50-DMA that will restrict downside at 47,650. However, a fall below the 50-DMA will invalidate the above breakout and index may slide towards 46,925. Meanwhile, any rise above 47,809 will confirm the resumption of uptrend with 48,981 in sight. The RSI and the MACD have moved up, suggesting a positive trend ahead. JS Securities Limited recommends investors to ‘Buy’ above 47,809. The support and resistance are at 47,538 and 47,894, respectively.

DGKC: Short term recovery expected

Strategy: ‘Buy on dips’ – targeting Rs116.65; stoploss at Rs110.05.

ISL: Recovery target remains intact

Strategy: ‘Buy on dips’ – targeting Rs96.34 and Rs101.50; stoploss at Rs91.83.