Karachi, August 31, 2021 (PPI-OT): KSE-100; Resistance test at moving averages

The KSE-100 index posted a gain of 229 points to close at 47,366. Volumes stood flat at 383mn shares. The index is expected to face resistance at 47,485 (30-DMA), followed by the 50-DMA at 47,592. A break above will extend the gain towards 48,145. Meanwhile, any downside will find support at yesterday’s low of 47,137. The indicators are mixed, signaling no clear trading view. Investors are recommended to stop selling above the 50-DMA. The support and resistance are at 47,179 and 47,510, respectively.

DGKC: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs110.07 and Rs114.42; stoploss at Rs105.75.

ISL: Downside target remains intact

Strategy: ‘Sell on Strength’ – targeting Rs93.73; stoploss at Rs99.74.