Karachi, April 13, 2023 (PPI-OT): KSE-100; Recovery movement to continue

KSE-100 index ended the session up by 321 points at the 40,126 level. Volumes stood at 80mn shares as compared to 60mn shares traded previously. The index is likely to re-test resistance at 40,173 (yesterday’s high) where a break above that will target the 30-DMA at 40,663 level. However, any downside will find support in the range of 39,890-40,040 levels as any violation below that will cause the downtrend to resume with 39,482 in sight. The RSI and the MACD have improved, supporting a recovery view. JS Securities Limited recommends investors to ‘Buy’ for trading gains, with risk defined below 39,804 level. The support and resistance are at 39,895 and 40,265 points, respectively.

BOP: Buy signal generated

Strategy: ‘Buy on dips’ – targeting Rs4.17 and Rs4.41; stoploss at Rs3.83.

HCAR: Recovery to continue

Strategy: ‘Buy on dips’ – targeting Rs115.47 and Rs120.08; stoploss at Rs110.60.