Karachi, May 12, 2022 (PPI-OT): KSE-100 at its major support range – stay cautious

KSE-100 index after making a low of 42,394 recovered to close at 42,863, down 641 points DoD. Volumes stood at 339mn shares versus 234mn shares traded previously. Once again, the index has maintained its major support range. However, we believe, the index is likely to test support at 42,394 (yesterday’s low) in the upcoming session where a drop below that will target 41,800 which could later extend to 41,191 level. However, any upside will face resistance in the range of 42,970-43,550. Though, a short-term pullback inside the band cannot be ruled out. JS Securities Limited recommends investors to stay cautious at current levels. The support and resistance are at 42,288 and 43,544, respectively.

ENGRO: Downside target remains intact

Strategy: ‘Sell on Strength’ – targeting Rs261.00; stoploss at Rs273.22.

BOP: A reversal formation and a bullish divergence

Strategy: ‘Buy on dips’ – targeting Rs6.57 and Rs6.93; stoploss at Rs6.00.