Karachi, April 18, 2022 (PPI-OT): KSE-100; Gain not supported by indicators – cautious

KSE-100 index opened on a positive note and remained firm throughout the session to close at 46,602, up 117 points DoD. Volumes stood at 366mn shares versus 495mn shares traded previously. The index is expected to consolidate at current levels, whereas any break above 46,786 will target 47,041, followed by 47,869. However, any downside will find support in the range of 46,320-46,485, followed by the 200-DMA at 45,566. The Stochastic Oscillator is overbought and the RSI has shown bearish divergence, thus warranting a cautious stance. JS Securities Limited recommends investors to stay cautious on the higher side and wait for dips. The support and resistance are at 46,462 and 46,763, respectively.

HCAR: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs215.90 and Rs227.70; stoploss at Rs203.70.

ISL: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs70.10 and Rs72.50; stoploss at Rs62.32.