Karachi, June 14, 2023 (PPI-OT): KSE-100 fall below the 30-DMA; stay cautious
KSE-100 index failed to sustain its intraday high of 42,026 and slid to close at 41,539, down 244 points DoD. Volumes stood low at 144mn shares versus 179mn shares traded previously. The index has dropped below the 30-DMA that will now restrict upside at 41,570 level, followed by 41,869. Meanwhile, any downside will be tested at the 200-DMA that is currently at 41,259.
The RSI and the MACD have shown weakness, warranting a cautious stance. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 41,365 and 41,868 points, respectively.
PSO: Moving averages to restrict downside move
Strategy: 'Buy on dips' - targeting Rs116.66 and Rs118.77; stop loss at Rs110.53.
DGKC: Slide to continue
Strategy: 'Sell on Strength' - targeting Rs49.71 and Rs49.15; stop loss at Rs52.66.