Karachi, December 20, 2022 (PPI-OT): KSE-100; Bears are gaining momentum – stay cautious

Bears dominated the session as KSE-100 index closed down by 331 points at 40,971. Volumes stood at 143mn shares versus 140mn shares traded previously. The index is expected to re-test support at yesterday’s low of 40,815 where a fall below that will target 40,417, followed by 39,540. However, any upside will face resistance in the range of 41,050-41,305 where a break above that will target the 50-DMA at the 42,107 level. The RSI and the MACD are heading down, suggesting a negative trend ahead. Investors are recommended to stay cautious at these levels. The support and resistance are at 40,726 and 41,304 points, respectively.

DGKC: A steady recovery to continue

Strategy: ‘Buy on dips’ – targeting Rs52.16 and Rs54.12; stoploss at Rs49.11.

ISL: Recovery to continue

Strategy: ‘Buy on dips’ – targeting Rs50.11 and Rs56.65; stoploss at Rs44.80.