Karachi, April 19, 2022 (PPI-OT): KSE-100; A short term correction is expected

KSE-100 index, after making a high of 46,970 slid to close at 46,540 level, down 62 points compared to the previous session. Volumes stood at 256mn shares versus 366mn shares traded previously. The index is expected to re-test support at 46,419 (last session’s low) where a fall below that will initiate the corrective trend with 45,560 as the downside target. However, any upside will continue to face resistance in the range of 46,640-46,970 levels. The RSI and the Stochastic Oscillator have moved down, supporting a corrective view. JS Securities Limited recommends investors to ‘Sell on Strength’, with risk defined above 46,970. The support and resistance are at 46,315 and 46,867, respectively.

HCAR: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs215.90 and Rs227.70; stoploss at Rs203.55.

UBL: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs134.41; stoploss at Rs142.78.