Karachi, August 19, 2022 (PPI-OT): KSE-100; Correction to continue – stay cautious

KSE-100 index failed to sustain its intraday high of 43,879 and slid to close at 43,482, down 195 points DoD. Volumes stood high at 620mn shares versus 608mn shares traded previously. The index is likely to revisit yesterday’s low of 43,390 where a fall below that will target 42,862 which could later extend to 42,227. However, the 200-DMA at 43,920 remains a key hurdle for any upside move. The RSI and the Stochastic Oscillator have shown weakness, suggesting a corrective trend ahead. A cautious stance is required at current levels. The support and resistance are at 43,288 and 43,777, respectively.

OGDC: Likely to fill the downward GAP

Strategy: ‘Sell on Strength’ – targeting Rs84.00 and Rs83.20; stoploss at Rs86.70.

BOP: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs6.59 and Rs7.50; stoploss at Rs5.56.