Karachi, July 05, 2023 (PPI-OT): KSE-100; Engulfing Bear - stay cautious

KSE-100 index after making a high of 44,512 slid to close at 43,557, down 342 points DoD. Volumes stood high at 419mn shares versus 382mn shares traded previously. An Engulfing Bear has occurred which indicates a corrective trend ahead. A fall below 43,404 will confirm the start of corrective trend with 42,748 and 42,203 as the downside targets. However, any upside will face resistance in the range of 43,850-44,220 levels. The RSI has generated a Sell signal, supporting a corrective view. We recommend investors to stay cautious at current levels. The support and resistance are at 43,193 and 44,216 points, respectively.

HCAR: 50-DMA to restrict downside

Strategy: 'Buy on dips' - targeting Rs106.30 and Rs110.57; stoploss at Rs100.66.

ISL: Upside target remains intact

Strategy: 'Buy on dips' - targeting Rs45.46 and Rs48.57; stoploss at Rs42.11.