Karachi, March 11, 2022 (PPI-OT): KSE-100; Recovery movement is likely to continue

KSE-100 index witnessed a sharp recovery to close at 43,854, a gain of 811 points DoD. Volumes stood at 272mn shares versus 184mn shares traded previously. The index is expected to revisit yesterday’s high of 43,922 where a break above that will target 44,166 which may rise to the 44,800 to 45,000 range. Any downside will find support in the range of 43,290-43,610 where a fall below these levels will target the key support at 42,715. The RSI has improved and the Stochastic Oscillator has generated a Buy signal, supporting a positive view. We recommend investors to ‘Buy on dips’, with risk defined below 43,290. The support and resistance are at 43,290 and 44,169, respectively.

HBL: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs119.98 and Rs122.96; stoploss at Rs112.30.

DGKC: Momentum indicators generated a Buy signal

Strategy: ‘Buy on dips’ – targeting Rs73.90 and Rs76.32; stoploss at Rs65.51.