Karachi, June 01, 2022 (PPI-OT): KSE-100; Consolidation to continue

Range bound activity continued at the PSX with KSE-100 index gaining 38 points DoD to close at the 43,078 level. Volumes stood at 285mn shares versus 187mn shares traded previously. A short-term consolidation is expected where we believe the index to trade between 42,500 to 43,500. A break above 43,500 level will target the 50-DMA at 44,178, whereas any downside break will re-test support at the recent low of 41,356. Meanwhile, the RSI and the MACD have continued to rise, supporting a positive view. JS Securities Limited recommends investors to ‘Buy on dips’, keeping stop-loss below 42,542. The support and resistance are at 42,951 and 43,272, respectively.

PPL: A steady uptrend to continue

Strategy: ‘Buy on dips’ – targeting Rs71.26 and Rs76.59; stoploss at Rs68.11.

UBL: Upside to continue

Strategy: ‘Buy on dips’ – targeting Rs134.96 and Rs136.91; stoploss at Rs129.99.