Karachi, August 05, 2022 (PPI-OT): KSE-100 just below its 50-DMA; Hold

KSE-100 index witnessed another positive session to close at 41,425, up 357 points DoD. Volumes stood at 275mn shares versus 333mn shares traded previously. The index has closed above the 30-DMA and is likely to re-test resistance at yesterday’s high of 41,630 where a break above that will extend the gain towards 42,500, followed by the 100-DMA at 42,859. However, any downside will find support in the range of 41,340 to 41,100 levels, The RSI and the MACD have continued to rise, supporting a positive view. Investors are recommended to ‘Buy on dips’, keeping stop-loss below the 30-DMA. The support and resistance are at 41,119 and 41,680, respectively.

PSO: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs184.49 and Rs191.13; stoploss at Rs174.66.

PPL: Moving averages to restrict downside

Strategy: ‘Buy on dips’ – targeting Rs73.20 and Rs74.68; stoploss at Rs68.17.