Karachi, December 16, 2022 (PPI-OT): KSE-100; Engulfing Bear – stay cautious

KSE-100 index posted a decline of 558 points to close at 41,180. Volumes stood high at 245mn shares versus 147mn shares traded previously. An Engulfing Bear has occurred which indicates a negative trend ahead. The next expected target is established at 40,826 which is extendable to the 40,350-40,420 range. However, any upside will face resistance in the range of 41,420-41,750 points where a break above that level will target the 50-DMA at 42,147 points. The RSI and the Stochastic Oscillator have taken a downturn, supporting the bearish view. JS Securities Limited recommends investors to stay cautious at current levels. The support and resistance are at 40,860 and 41,748 points, respectively.

DGKC: Expected to trade range bound

Strategy: ‘Buy on dips’ – targeting Rs52.46 and Rs54.59; stoploss at Rs48.77.

ISL: Recovery trend intact

Strategy: ‘Buy on dips’ – targeting Rs48.39 and Rs50.49; stoploss at Rs44.10.