Karachi, September 24, 2021 (PPI-OT): KSE-100; 200-DMA to remain a key hurdle

After testing resistance at the 200-DMA, the KSE-100 index slid to close at 45,297, down 300 points. Volumes stood at 444mn shares versus 584mn shares traded previously. The index is expected to re-test support at its recent low of 44,788 and a fall below the said level will initially target 44,567, followed by 43,630. However, any upside will continue to face resistance at the 200-DMA that is currently at 45,955 level. The RSI is oversold and the index is trading below the lower Bollinger Band indicating a short term recovery ahead. JS Securities Limited recommends investors to ‘Sell on Strength’, with risk defined above the 200-DMA. The support and resistance are at 44,940 and 45,796, respectively.

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