Karachi, August 05, 2021 (PPI-OT): KSE-100; Consolidation expected above the 50-DMA

The KSE-100 index witnessed a volatile session to close at 47,790, up 32 points. Volumes stood at 533mn shares versus 443mn shares traded previously. The index is currently trading above the 50-DMA that will restrict downside at 47,687. However, a fall below the 50-DMA will extend the decline towards 46,925. Meanwhile, the index is expected to face resistance at yesterday’s high of 47,980 where a break above will extend the gain towards 48,981. The Stochastic Oscillator and the MACD are heading up, suggesting a positive trend ahead. JS Securities Limited recommends investors to ‘Buy’ at lower levels, with risk defined below the 50-DMA. The support and resistance are at 47,673 and 47,944, respectively.

HCAR: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs372.19 and Rs382.81; stoploss at Rs360.61.

ISL: Recovery target remains intact

Strategy: ‘Buy on dips’ – targeting Rs96.34 and Rs101.50; stoploss at Rs91.99.