Karachi, July 06, 2023 (PPI-OT): KSE-100 may undergo corrective trend; cautious
KSE-100 index failed to sustain its intraday high of 44,041 and slid to close at 43,553, down 4 points. Volumes stood at 351mn shares versus 419mn shares traded previously. The index is likely to re-test support in the range of 43,400-43,470 levels where a drop below that will initiate a corrective trend with 42,748 and 42,203 in sight. Meanwhile, any upside will be tested between 43,680 and 43,910 levels, respectively. The RSI has moved down and the Stochastic Oscillator has generated a sell signal, suggesting a corrective trend ahead. We recommend investors to stay cautious at current levels. The support and resistance are at 43,331 and 43,908 points, respectively.
HCAR: Holding the key support of 50-DMA
Strategy: 'Buy on dips' - targeting Rs106.30 and Rs110.57; stoploss at Rs100.39.
ISL: Likely to re-test resistance at 200-DMA
Strategy: 'Buy on dips' - targeting Rs45.39 and Rs48.57; stoploss at Rs43.25.