Karachi, August 26, 2022 (PPI-OT): KSE-100 likely to resume the downtrend; stay cautious

KSE-100 index extended the decline to close at 43,033, down 305 points DOD. Volumes stood low at 208mn shares versus 256mn shares traded previously. The index is expected to re-test support at 42,788 (recent low) where a drop below that will resume the corrective trend with 42,227 as the next target. However, any upside will face resistance in the range of 43,150-43,340 where a break above that will target the 200-DMA at 43,833. The RSI and the MACD have moved down, suggesting a negative trend ahead. We recommend investors to ‘Sell’ below 42,788. The support and resistance are at 42,843 and 43,340, respectively.

PSO: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs180.25 and Rs176.01; stoploss at Rs186.75.

ATRL: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs170.00 and Rs183.55; stoploss at Rs161.60.