Karachi, July 06, 2022 (PPI-OT): KSE-100 moving towards its key support; stay cautious

KSE-100 index witnessed another negative session to close at 41,103, down 246 points DoD. Volumes remained dull at 77mn shares versus 87mn shares traded previously. The index is likely to test support at yesterday’s low of 41,069 where a fall below that will target the key support at 40,600. However, any upside will face resistance between the 41,210 to 41,460 levels, followed by the 30-DMA at 41,888. The RSI and the MACD have shown weakness, warranting a cautious stance. Investors are recommended to stay cautious on the higher side and wait for dips. The support and resistance are at 40,961 and 41,351, respectively.

BOP: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs5.62 and Rs5.90; stoploss at Rs5.38.

PSO: Correction to continue

Strategy: ‘Sell on Strength’ – targeting Rs165.03; stoploss at Rs170.65.