Karachi, February 09, 2023 (PPI-OT): KSE-100; 200-DMA still remains a key hurdle

KSE-100 index showed positive movement to close at the 41,723 level, up 201 points DoD. Volumes stood flat at 298mn shares. The index is expected to re-test resistance at the 200-DMA that currently stands at 41,763 where a break above that will extend the gain towards 42,398, followed by 43,126. However, any downside will find support in the range of 41,470-41,660 where a fall below that will initiate a corrective trend with 40,515 as the downside target. The RSI and the MACD have continued to rise, supporting a positive view. Investors are recommended to ‘Buy on dips’, with risk defined below 41,405. The support and resistance are at 41,470 and 41,912 points, respectively.

HCAR: Engulfing Bull

Strategy: ‘Buy on dips’ – targeting Rs137.35 and Rs140.69; stoploss at Rs128.31.

HBL: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs78.45 and Rs81.62; stoploss at Rs74.50.