Karachi, August 17, 2023 (PPI-OT): KSE-100; An Engulfing Bear - stay cautious

KSE-100 index showed negative movement to close at 48,146, down 419 points DOD. Volumes stood at 195mn shares versus 252mn shares traded previously. An Engulfing Bear has occurred which indicates a negative trend ahead. A fall below 48,108 will extend the decline towards 47,887 which may be extended to 47,262. However, any upside will face resistance in the range of 48,290-48,470 levels. The RSI and the MACD have moved down, suggesting a negative trend ahead. Investors are recommended to stay sellers on the higher side, with risk defined above 48,614. The support and resistance are at 47,965 and 48,471 levels, respectively.

PSO: Moving averages to restrict upside

Strategy: 'Sell on Strength' - targeting Rs118.20 and Rs111.85; stoploss at Rs126.46.

DGKC: Slide to continue

Strategy: 'Sell on Strength' - targeting Rs50.87 and Rs48.47; stoploss at Rs53.77.