Karachi, June 28, 2022 (PPI-OT): KSE-100 expected to target the 30-DMA at 42,139

KSE-100 index witnessed a recovery movement to close at 41,879, up 827 points DoD. Volumes stood at 248mn shares versus 424mn shares traded previously. The index is expected to test resistance at the 30-DMA that is at 42,139 where a break above that will neutralize the bearish momentum. The next target will be between 42,780 to 42,980 levels which could later extend to the 50-DMA at 43,324 level. However, any downside will find support at 41,353, followed by 41,052. The RSI and the MACD have moved up, supporting a recovery view. Investors are recommended to ‘Buy on dips’, with risk defined below 41,052. The support and resistance are at 41,304 and 42,202, respectively.

HCAR: Closed above the medium-term moving averages

Strategy: ‘Buy on dips’ – targeting Rs193.10 and Rs204.95; stoploss at Rs175.57.

UBL: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs118.34 and Rs122.89; stoploss at Rs110.98.