Karachi, July 31, 2023 (PPI-OT): KSE-100; A short term correction is due - stay cautious

Bulls dominated the session as KSE-100 index closed at 47,077, up 394 points. Volumes stood at 455mn shares versus 430mn shares traded previously. The index is expected to re-test resistance at 47,393 level where a break above that will extend the gain towards 48,982 level. However, any downside will find support at 46,780 level as any fall below that will initiate the corrective trend. The RSI and the Stochastic Oscillator currently indicate market being overbought, warranting a cautious stance. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 46,773 and 47,387 levels, respectively.

ISL: Likely to resume uptrend

Strategy: 'Buy on dips' - targeting Rs49.45 and Rs52.13; stoploss at Rs47.26.

PSO: Closed above 200-DMA

Strategy: 'Buy on dips' - targeting Rs134.26 and Rs142.10; stoploss at Rs129.67.