Karachi, April 10, 2023 (PPI-OT): KSE-100; Recovery trend intact

KSE-100 after making a high of 40,550, slid to close at 40,050, down 301 points DoD. Volumes stood at 135mn shares versus 171mn shares traded previously. The index is expected to re-test support at 40,005 where a fall below that will cause the downtrend to resume with 39,482 as the downside target. However, any upside will face resistance in the range of 40,200-40,400 where a break above that will continue the recovery move towards 40,737 and 40,872 levels. Meanwhile, the indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to ‘Buy on dips’, with risk defined below 40,005. The support and resistance are at 39,853 and 40,398 points, respectively.

BOP: Bullish Divergence

Strategy: ‘Buy on dips’ – targeting Rs4.23 and Rs4.46; stoploss at Rs3.74.

HCAR: Reversal formation

Strategy: ‘Buy on dips’ – targeting Rs116.58 and Rs121.26; stoploss at Rs109.60.