Karachi, May 18, 2022 (PPI-OT): KSE-100; Consolidation expected

KSE-100 index witnessed a range bound session to close at 42,726 (+59 points). Volumes stood at 198mn shares versus 250mn shares traded previously. The index is expected to face resistance in the range of 42,870-43,020 where a break above that will target 44,067. On the downside, the levels between 42,270 to 42,375 stands as a key support and a drop below that will resume the downtrend with 41,763 and 41,191 as the next targets. The RSI and the Stochastic Oscillator have improved, supporting a recovery view. We recommend investors to ‘Buy on dips’, with risk defined below 42,273. The support and resistance are at 42,594 and 42,870, respectively.

HCAR: Recovery likely

Strategy: ‘Buy on dips’ – targeting Rs192.63; stoploss at Rs168.51.

DGKC: Recovery trend remains intact

Strategy: ‘Buy on dips’ – targeting Rs62.98 and Rs67.72; stoploss at Rs55.31.