Karachi, August 31, 2023 (PPI-OT): KSE-100 moving towards the 50-DMA level

Bears dominate for another session as KSE-100 index lost 526 points to close the session at 46,245. Volumes stood at 200mn shares versus 218mn shares traded previously. The index is likely to re-test support at 46,101 (yesterday's low) where a fall below that will extend the decline towards 45,697, followed by 45,578 (50-DMA). However, any upside will be tested in the range of 46,400-46,700 levels. The RSI and the Stochastic Oscillator are moving down, supporting a bearish view. We recommend investors to 'Sell on Strength', keeping stop-loss above 46,701 level. The support and resistance are at 45,945 and 46,701 levels, respectively.

ISL: Trapped between the key averages

Strategy: 'Buy on dips' - targeting Rs45.37 and Rs46.84; stop loss at Rs44.02.

PSO: Trading below the 50-DMA level

Strategy: 'Sell on Strength' - targeting Rs111.85 and Rs102.45; stop loss at Rs120.59.