Karachi, August 21, 2023 (PPI-OT): KSE-100; Consolidation to continue

KSE-100 index failed to sustain its intraday high of 48,615 and slid to close at the 48,218 level, down 107 points DoD. Volumes stood at 255mn shares versus 227mn shares traded previously. The index is expected to test support in the range of 47,920-48,070 levels where a fall below that will target 47,262, followed by 46,748 (30-DMA). However, any upside will face resistance in the range of 48,340-48,620 levels. The RSI and the MACD have moved down, supporting a negative view. We recommend investors to 'Sell on Strength', with risk defined above 48,615 level. The support and resistance are at 48,071 and 48,490 levels, respectively.

DGKC: Slide to continue

Strategy: 'Sell on Strength' - targeting Rs50.18 and Rs48.44; stoploss at Rs52.69.

HCAR: Consolidation likely above 200-DMA

Strategy: 'Buy on dips' - targeting Rs131.74 and Rs137.54; stoploss at Rs125.81.