Karachi, February 09, 2022 (PPI-OT): KSE-100; Resistance continued at the 200-DMA

The KSE-100 index witnessed another range bound session to close at 45,948, up 107 points DoD. Volumes improved to 187mn shares versus 150mn shares traded previously. The index is likely to re-test resistance at the 200-DMA where a break above that level will target 46,680 and 46,960 levels. However, any downside will find support at yesterday’s low of 45,728 where a drop below the said level will kick off the corrective trend with 45,335 in sight. The indicators are mixed, signalling no clear trading view. We recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 45,770 and 46,083, respectively.

OGDC: Downside restricted at the 200-DMA

Strategy: ‘Buy on dips’ – targeting Rs93.93 and Rs96.54; stoploss at Rs89.41.

ENGRO: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs287.52 and Rs296.50; stoploss at Rs274.25.