Karachi, February 01, 2023 (PPI-OT): KSE-100 expected to re-test resistance at the 50-DMA

KSE-100 index opened on a positive note and remained firm throughout the session to close at 40,673, up 802 points. Volumes stood at 153mn shares versus 140mn shares traded previously. The index is expected to re-test resistance at 40,701 (50-DMA) where a break above that will target 41,095, followed by the 200-DMA at 41,925 level. However, any downside will find support at 40,420, followed by 39,946 (30-DMA). The RSI and the MACD are moving up, supporting a positive view. JS Securities Limited recommends investors to ‘Buy on dips’, keeping stop-loss below the 30-DMA. The support and resistance are at 40,124 and 40,970 points, respectively.

ISL: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs41.90 and Rs43.65; stoploss at Rs39.00.

PPL: Likely to resume uptrend

Strategy: ‘Buy on dips’ – targeting Rs82.00 and Rs84.75; stoploss at Rs74.80.