Karachi, August 18, 2022 (PPI-OT): KSE-100; A Bearish Divergence on RSI – stay cautious

KSE-100 index witnessed a volatile session to close at 43,677 level, up 240 points DoD. Volumes stood at 608mn shares versus 518mn shares traded previously. The index is expected to target the 200-DMA that is currently at 43,932 level where a break above that will target 44,328. Meanwhile, any downside will find support at 43,389 (yesterday’s low) and a fall below that will extend the decline towards 42,862 and 42,227 levels. A bearish divergence has been created on the RSI, warranting a cautious approach. Investors are recommended to stay cautious on the higher side. The support and resistance are at 43,465 and 43,812, respectively.

OGDC: Likely to fill the downward GAP

Strategy: ‘Sell on Strength’ – targeting Rs83.99 and Rs83.20; stoploss at Rs88.30.

BOP: Moving up steadily

Strategy: ‘Buy on dips’ – targeting Rs6.59 and Rs7.50; stoploss at Rs5.80.