Karachi, July 14, 2023 (PPI-OT): KSE-100 may undergo corrective trend; cautious

KSE-100 index after making a high of 45,971, slid to close at the 45,267 level, down 248 points. Volumes stood high at 489mn shares versus 450mn shares traded previously. The index is likely to re-test support at 45,256 where a fall below that will initiate a corrective trend with 44,990 and 44,385 in sight. However, any upside will face resistance in the range of 45,500-45,750. The RSI and the Stochastic Oscillator have taken a downturn, suggesting a corrective trend ahead. An Engulfing Bear has occurred which adds further strength to the above view. We recommend investors to 'Sell' below 45,256. The support and resistance are at 45,025 and 45,740 levels, respectively.

UBL: Corrective trend ahead

Strategy: 'Sell on Strength' - targeting Rs130.18 and Rs126.21; stoploss at Rs135.98.

ISL: Sell signal generated

Strategy: 'Sell on Strength' - targeting Rs45.16 and Rs42.82; stoploss at Rs51.24.