Karachi, February 15, 2023 (PPI-OT): KSE-100 dropped below the 200-DMA; stay cautious

Bears dominated the session as KSE-100 index lost 567 points to close at 41,150 level. Volumes stood at 188mn shares versus 192mn shares traded previously. The index has dropped below the 200-DMA that indicates further weakness ahead. The next target is established at 40,875 which could later extend to 40,503 (50-DMA). However, any upside will face resistance in the range of 41,350-41,700 levels. The Stochastic Oscillator and the RSI have shown weakness, supporting a corrective view. Investors are recommended to wait for dips. The support and resistance are at 40,849 and 41,650 points, respectively.

HBL: Correction expected

Strategy: ‘Sell on Strength’ – targeting Rs73.55 and Rs70.97; stoploss at Rs79.49.

BOP: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs5.37; stoploss at Rs4.99.