Karachi, July 07, 2023 (PPI-OT): KSE-100; Consolidation to continue

KSE-100 index showed positive movement to close at 44,179 level, up 626 points DoD. Volumes stood at 298mn shares versus 351mn shares traded previously. The index is expected to re-test resistance at its recent high of 44,512 where a break above that will target 45,024 level which may extend to 46,201. However, any downside will find support in the range of 43,750-43,980 levels. The MACD is on a rising trend, while a bearish divergence has been created by RSI, signalling no clear trading view. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 43,748 and 44,411 points, respectively.

PSO: Upside likely

Strategy: 'Buy on dips' - targeting Rs125.15 and Rs131.57; stoploss at Rs122.00.

ISL: 200-DMA breakout expected

Strategy: 'Buy on dips' - targeting Rs45.32 and Rs48.57; stoploss at Rs43.75