Karachi, August 30, 2023 (PPI-OT): KSE-100 dropped below the 30-DMA; stay cautious

Bears dominated the session as KSE-100 index lost 708 points to close at 46,770 level. Volumes stood at 218mn shares versus 184mn shares traded previously. The index has dropped below the 30-DMA indicating potential for further downside move. A fall below 46,598 (yesterday's low) will extend the decline towards 45,697. However, any upside will face resistance at the 30-DMA currently at 47,347. The RSI and the Stochastic Oscillator have moved down, supporting a bearish view. We recommend investors to 'Sell on Strength', keeping stop-loss above the 30-DMA. The support and resistance are at 46,455 and 47,229 levels, respectively.

ISL: Play the range

Strategy: 'Buy on dips' - targeting Rs45.30 and Rs46.94; stoploss at Rs44.06.

PPL: Close below the 30-DMA

Strategy: 'Sell on Strength' - targeting Rs68.85 and Rs66.17; stoploss at Rs73.13.