Karachi, February 06, 2023 (PPI-OT): KSE-100; Consolidation to continue near 50-DMA

KSE-100 index witnessed a volatile session to close at 40,471, down 262 points DoD. Volumes stood low at 105mn shares versus 124mn shares traded previously. The index is expected to re-test resistance at the 50-DMA that currently stands at 40,563 where a break above that will extend the gain towards 41,095, followed by the 200-DMA at 41,838. However, a fall below 40,330 (Friday’s low) will target the 30-DMA at 40,045. The MACD is moving up, while the RSI has shown weakness, signalling no clear trading view. JS Securities Limited recommends investors to stay cautious on the higher side and wait for dips. The support and resistance are at 40,243 and 40,786 points, respectively.

ISL: Recovery target remains intact

Strategy: ‘Buy on dips’ – targeting Rs41.51 and Rs43.09; stoploss at Rs40.00.

ATRL: Likely to fill the downward GAP

Strategy: ‘Sell on Strength’ – targeting Rs159.25 and Rs157.23; stoploss at Rs170.75.