Karachi, December 22, 2022 (PPI-OT): KSE-100; A short term recovery expected

KSE-100 index extended it’s decline to close at 39,343, down 490 points. Volumes stood at 166mn shares versus 265mn shares traded previously. If the decline continues, the likely target will be at 39,110 points which may be extended to 38,343 points. However, any upside will face resistance in the range of 39,550-39,820 points, followed by 40,022 points. Meanwhile, the index is trading below the lower Bollinger Band which indicates a short term pullback inside the band is likely. JS Securities Limited recommends investors to ‘Buy’ for trading gains, with risk defined below 39,277 points. The support and resistance are at 39,072 and 39,818 points, respectively.

DGKC: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs51.75 and Rs53.59; stoploss at Rs47.20.

HCAR: Buy signal generated

Strategy: ‘Buy on dips’ – targeting Rs154.45 and Rs160.97; stoploss at Rs135.12.