Karachi, April 07, 2023 (PPI-OT): KSE-100; A short term recovery to continue

KSE-100 index recovered sharply to close at the 40,351, up 634 points DoD. Volumes improved to 171mn shares from 87mn shares traded previously. The index is expected to target in the range of 40,550 to 40,770 levels which could later extend to the 50-DMA at 40,888. However, any downside will find support in the range of 39,920-40,150 levels. The RSI and the Stochastic Oscillator have moved up, supporting a recovery view. Investors are recommended to ‘Buy on dips’, keeping stop-loss below 40,147 points. The support and resistance are at 39,920 and 40,577 points, respectively.

ENGRO: Buy signal generated

Strategy: ‘Buy on dips’ – targeting Rs283.74 and Rs287.99; stoploss at Rs271.50.

HCAR: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs117.09 and Rs121.77; stoploss at Rs110.31.