Karachi, July 19, 2022 (PPI-OT): KSE-100 dropped below the 30-DMA; stay cautious

KSE-100 index extended the decline to close at 41,367, down 708 points compared to the previous trading session. Volumes stood at 151mn shares versus 140mn shares traded previously. The index has dropped below the 30-DMA that will now restrict upside at 41,683. However, a drop below yesterday’s low of 41,275 will target 41,100 to 41,000 range which may expose further weakness towards 40,600. The RSI and the MACD have shown weakness, suggesting a negative trend ahead. A cautious stance is required at current levels. The support and resistance are at 41,070 and 41,870, respectively.

SNGP: Correction expected

Strategy: ‘Sell on Strength’ – targeting Rs34.98; stoploss at Rs39.56.

HCAR: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs162.07; stoploss at Rs171.85.