Karachi, January 28, 2022 (PPI-OT): KSE-100; Consolidation to continue

The KSE-100 index extended gains to close at the 45,083 level, up 128 points. Volumes stood at 174mn shares versus 137mn shares traded previously. The index is consolidating above the 30-DMA that will restrict downside at 44,905, followed by the 50-DMA at the 44,623 level. However, any upside will face resistance at 45,180 (yesterday’s high) where a break above this level will target the range of 45,250-45,500, followed by the 200-DMA at 46,037 level. The indicators are mixed, supporting a neutral view. JS Securities Limited recommends investors to ‘Buy on dips’, with risk defined below the 50-DMA. The support and resistance are at 44,965 and 45,190, respectively.

ENGRO: Upside restricted at the 50-DMA

Strategy: ‘Sell on Strength’ – targeting Rs264.0; stoploss at Rs273.2.

PSO: Consolidation likely with limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs198.9 and Rs206.5; stoploss at Rs183.1.