Karachi, July 12, 2021 (PPI-OT): KSE-100; Consolidation to continue
The KSE-100 index ended the session at 47,563, down 490 points. Volumes stood at 506mn shares versus 475mn shares traded previously. The index is likely to consolidate between the 50-DMA and the 30-DMA that stands at 46,967 and 47,921, respectively. A break above or below is needed for a directional move. The Stochastic Oscillator has moved up, while the RSI has shown weakness, supporting a neutral view. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 47,387 and 47,896, respectively.
SNGP: Upside likely
Strategy: ‘Buy on dips’ – targeting Rs51.69 and Rs53.90; stop loss at Rs47.97.
PPL: Limited Upside
Strategy: ‘Sell on Strength’ – targeting Rs80.51; stop loss at Rs87.74.