Karachi, July 21, 2022 (PPI-OT): KSE-100; A short term consolidation expected

KSE-100 index adjusted its previous declines to close at 40,460 level, up 71 points DoD. Volumes stood at 142mn shares versus 195mn shares traded previously. The index is likely to re-test support at 40,135 (yesterday’s low) where a fall below that will initiate a new bearish trend with 39,520 and 38,600 as the next targets. However, any upside will face resistance in the range of 40,530-40,780 levels. Meanwhile, the indicators are mixed, signaling no clear trading view. Investors are recommended to ‘Sell’ below 40,135. The support and resistance are at 40,219 and 40,617, respectively.

OGDC: Expected to fill the upward GAP

Strategy: ‘Buy on dips’ – targeting Rs82.56 and Rs84.05; stoploss at Rs77.55.

ENGRO: Downside target remains intact

Strategy: ‘Sell on Strength’ – targeting Rs237.89; stoploss at Rs245.99.