Karachi, January 25, 2023 (PPI-OT): KSE-100; Recovery likely

KSE-100 index extended the gain to close at 39,056 level, up 612 points DoD. Volumes improved to 180mn shares from 81mn shares traded previously. If the gains continue, the initial target will be at 39,314 which can be extended to 40,042. However, any downside will find support in the range of 38,630-38,870 and a fall below these levels will test its recent low of 38,135. The RSI and the Stochastic Oscillator have shown improvement, supporting a recovery view. JS Securities Limited recommends investors to ‘Buy on dips’, with risk defined below 38,635. The support and resistance are at 38,635 and 39,284 points, respectively.

PSO: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs134.03 and Rs140.47; stoploss at Rs124.51.

ISL: Buy signal generated

Strategy: ‘Buy on dips’ – targeting Rs41.91 and Rs45.01; stoploss at Rs37.31.