Karachi, May 18, 2023 (PPI-OT): KSE-100 may undergo technical correction; cautious

KSE-100 index failed to sustain its intraday high of 42,110 and slid to close at the 41,834 level, down 173 points DoD. Volumes stood at 125mn shares versus 196mn shares traded previously. The index is expected to revisit yesterday's low of 41,818 where a fall below that will initiate the corrective trend with 41,345 as the downside target. Meanwhile, any upside will face resistance in the range of 41,920-42,110 levels where a break above that will invalidate the corrective view. The indicators are mixed, signalling no clear trading view. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 41,731 and 42,023 points, respectively.

ISL: Moving averages to restrict downside

Strategy: 'Buy on dips' - targeting Rs44.62 and Rs46.70; stoploss at Rs42.66.

DGKC: Correction expected

Strategy: 'Sell on Strength' - targeting Rs45.54 and Rs44.55; stoploss at Rs48.09.