Karachi, January 31, 2022 (PPI-OT): KSE-100; Support at the 30-DMA

The KSE-100 index failed to sustain its intraday high of 45,312 and slid to close at 45,078 level, down by meagre 5 points. Volumes stood at 259mn shares versus 174mn shares traded previously. The index is expected to revisit Friday’s low of 45,042 where a break below this level will target the 30-DMA at 44,945 which may extend to 50-DMA at 44,594 level. However, any upside will face resistance at Friday’s high of 45,312 and any upside break will target 45,477, followed by the 200-DMA at 46,042. The indicators are mixed, supporting a neutral view. We recommend investors to ‘Buy on dips’, keeping stoploss below the 30-DMA. The support and resistance are at 44,976 and 45,246, respectively.

ENGRO: Upside restricted at the 50-DMA

Strategy: ‘Sell on Strength’ – targeting Rs264.0; stoploss at Rs272.8.

ISL: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs74.4; stoploss at Rs67.6.