Karachi, August 17, 2021 (PPI-OT): KSE-100; Bears are gaining momentum

The KSE-100 index extended the decline to close at 46,913, down 257 points. Volumes stood at 252mn shares versus 213mn shares traded previously. The index has dropped below its critical support level indicating a bearish trend ahead. The downside target has been established at 45,674, followed by the 200-DMA at 45,135. However, any upside will face resistance in the range of 47,160-47,500. Meanwhile, the RSI and the MACD are heading down, supporting a negative view. We recommend investors to ‘Sell on Strength’, with risk defined above the 30-DMA. The support and resistance are at 46,665 and 47,166, respectively.

UBL: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs136.00 and Rs149.25; stoploss at Rs125.78.

HCAR: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs333.00; stoploss at Rs359.90.