Karachi, July 27, 2021 (PPI-OT): KSE-100; Expected to test support at the 50-DMA

The KSE-100 index showed negative movement to close at 47,673 (-120 points). Volumes stood at 450mn shares versus 314mn shares traded previously. The index is likely to test support at the 50-DMA standing at 47,420 where a fall below will kick off the downtrend. However, any upside will face resistance in the range of 47,800-47,935 where a break above will extend the gain towards 48,982. The RSI and the Stochastic Oscillator have shown weakness, suggesting a negative trend ahead. A cautious stance is required at current levels. The support and resistance are at 47,542 and 47,867, respectively.

ISL: 50-DMA to restrict upside

Strategy: ‘Sell on Strength’ – targeting Rs85.91; stoploss at Rs91.00.

MLCF: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs43.79; stoploss at Rs46.79.