Karachi, December 29, 2022 (PPI-OT): KSE-100; Bullish Divergence on RSI

KSE-100 index witnessed another negative session to close at 39,279, down 523 points. Volumes stood at 258mn shares versus 154mn shares traded previously. The index is expected to re-test support at yesterday’s low of 39,028 where a fall below that will extend the decline towards 38,860, followed by 38,603. However, any upside will face resistance in the range of 39,390-39,760 levels. Meanwhile, a bullish divergence has occurred on RSI and the Stochastic Oscillator is heading up, suggesting a bottom formation. A cautious buying is suggested with risk defined below 39,028. The support and resistance are at 38,915 and 39,755 points, respectively.

OGDC: Recovery target remains intact

Strategy: ‘Buy on dips’ – targeting Rs77.35 and Rs78.70; stoploss at Rs74.00.

HCAR: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs157.18 and Rs160.56; stoploss at Rs150.42.