Karachi, April 22, 2022 (PPI-OT): KSE-100; Key support at 45,537 (200-DMA)

KSE-100 index closed in the negative zone for the fourth consecutive session as it lost 291 points to close at 45,653. Volumes stood low at 186mn shares versus 235mn shares traded previously. The index is likely to test support at the 200-DMA that currently stands at 45,537 where a drop below this level will target 44,500 level. However, any upside will face resistance in the range of 45,770-45,950. The RSI and the MACD are heading down, supporting a corrective view. We recommend investors to ‘Sell on Strength’, with risk defined above 46,067. The support and resistance are at 45,479 and 45,947, respectively.

ATRL: Bearish Divergence

Strategy: ‘Sell on Strength’ – targeting Rs148.74 and Rs143.25; stoploss at Rs164.89.

ENGRO: Short term correction expected

Strategy: ‘Sell on Strength’ – targeting Rs279.78 and Rs273.53; stoploss at Rs297.00.