Karachi, January 27, 2022 (PPI-OT): KSE-100 expected to trade range bound

The KSE-100 index after hitting a low of 44,713, recovered to close up by 67 points at 44,955 level. Trading activity remained dull as market volumes declined by 34% DoD to 137mn shares. The index is sustaining above its critical support range where any upward pressure will push the index high towards the range of 45,250-45,500, followed by the 200-DMA at 46,033 level. Meanwhile, the 50-DMA stands as a key support level at 44,643. RSI has improved, while MACD is heading down, signalling no clear trading view. Investors are recommended to ‘Buy on dips’, with risk defined below the 50-DMA. The support and resistance are at 44,768 and 45,086, respectively.

ENGRO: Moving averages to stay a key hurdle

Strategy: ‘Sell on Strength’ – targeting Rs264.0; stoploss at Rs273.4.

PSO: Trading above the moving average – Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs198.9 and Rs206.5; stoploss at Rs182.9.