Karachi, October 06, 2021 (PPI-OT): KSE-100; An Engulfing Bear – sign of reversal

The KSE-100 index closed the session lower at 44,667, down 378 points. Volumes stood at 335mn shares versus 267mn shares traded previously. The index is likely to re-test support at 44,594 (yesterday’s low) where a fall below the said level will target 43,970. However, any upside will face resistance in the range of 44,780-44,980 where a break above these levels will extend the gain towards 46,073 (200-DMA). An Engulfing Bear has occurred in a downtrend which indicates a bullish reversal, though, requires confirmation. Investors are recommended to wait for dips. The support and resistance are at 44,473 and 44,981, respectively.

PSO: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs209.10 and Rs213.81; stoploss at Rs199.00.

ISL: Recovery trend to continue

Strategy: ‘Buy on dips’ – targeting Rs82.70; stoploss at Rs76.85.