Karachi, March 20, 2023 (PPI-OT): KSE-100 dropped below the 200-DMA; stay cautious

KSE-100 index showed negative movement on Friday to close at 41,330, down 364 points. Volumes stood low at 173mn shares versus 235mn shares traded previously. The index has dropped below the 200-DMA and is likely to re-test support at 41,305 (30-DMA) where a fall below that level will target the 50-DMA at 40,748 points. However, any upside will face resistance in the range of 41,440-41,670 points. The RSI and the MACD are heading down, suggesting a negative trend ahead. Investors are recommended to ‘Sell’ below 41,305. The support and resistance are at 41,130 and 41,669 points, respectively.

PPL: Downside target remains intact

Strategy: ‘Sell on Strength’ – targeting Rs67.68 and Rs65.89; stoploss at Rs72.09.

HCAR: Moving up steadily

Strategy: ‘Buy on dips’ – targeting Rs123.15 and Rs127.22; stoploss at Rs119.00.