Karachi, July 26, 2023 (PPI-OT): KSE-100; Indicators overbought - stay cautious

Bulls continued to dominate the session as KSE-100 index gained 363 points to close at 46,417. Volumes stood at 320mn shares versus 299mn shares traded previously. The index is expected to face resistance in the range of 46,540-46,770 where a break above that will target 47,443. Meanwhile, any downside will find support at 46,020 where a fall below this level will initiate the corrective trend. The RSI and the Stochastic Oscillator are currently overbought, warranting a cautious stance. We recommend investors to stay cautious on the higher side. The support and resistance are at 46,111 and 46,632 levels, respectively.

DGKC: Upside target remains intact

Strategy: 'Buy on dips' - targeting Rs56.69 and Rs58.90; stoploss at Rs53.45.

PSO: Upside likely

Strategy: 'Buy on dips' - targeting Rs126.10 and Rs128.78; stoploss at Rs119.80.