Karachi, June 03, 2022 (PPI-OT): KSE-100 expected to resume downtrend; stay cautious

KSE-100 index extended the decline to close at 42,238, down 518 points DoD. Volumes stood at 157mn shares versus 194mn shares traded previously. The index is expected to re-test support at 42,133 where a fall below that will target its recent low of 41,356 which may extend to 40,600. However, any upside will face resistance in the range of 42,400-42,665. The RSI and the MACD have shown weakness, suggesting a negative trend ahead. Investors are recommended to ‘Sell’ below 42,133. The support and resistance are at 41,973 and 42,663, respectively.

HCAR: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs166.00; stoploss at Rs183.89.

ISL: Moving averages to restrict upside

Strategy: ‘Sell on Strength’ – targeting Rs54.60; stoploss at Rs61.15.