Karachi, January 26, 2022 (PPI-OT): KSE-100 expected to test key support range

The KSE-100 index failed to sustain its intraday high of 45,255 and slid to close at 44,888, down 36 points. Volumes stood at 207mn shares versus 160mn shares traded previously. The index is likely to test support in the range of 44,665 – 44,841 where a fall below these levels will initiate the downtrend with 44,275 and 42,715 as the next targets. However, any upside will face resistance at yesterday’s high of 45,255 where a break above that level will target 45,477, followed by the 200-DMA at 46,026. The indicators are mixed, signalling no clear trading view. JS Securities Limited recommends investors to stop buying below the 50-DMA. The support and resistance are at 44,737 and 45,147, respectively.

ENGRO: Moving averages to restrict upside

Strategy: ‘Sell on Strength’ – targeting Rs264.0; stoploss at Rs274.0.

PSO: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs198.9 and Rs206.5; stoploss at Rs182.9.