Karachi, December 23, 2022 (PPI-OT): KSE-100; Recovery to continue

After three consecutive declining sessions, KSE-100 index bounced back to close at 39,838 level, up 495 points. Volume improved to 195mn shares from 166mn shares traded previously. The index is expected to revisit yesterday’s high of 39,926 points where a break above that level will continue the recovery trend with 40,316 and 40,958 points as the upside targets. However, any downside will find support in the range of 39,470-39,700 points. The RSI and the Stochastic Oscillator have taken an upturn, supporting a recovery view. JS Securities Limited recommends investors to ‘Buy on dips’, with risk defined below 39,330 points. The support and resistance are at 39,470 and 40,066 points, respectively.

ATRL: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs135.45 and Rs143.77; stoploss at Rs128.70.

PSO: RSI generated a Buy signal

Strategy: ‘Buy on dips’ – targeting Rs134.31 and Rs138.03; stoploss at Rs125.20.