Karachi, May 26, 2022 (PPI-OT): KSE-100; A reversal formation

KSE-100, after making a low of 41,356, recovered to close at 42,013, up 62 points DoD. Volumes improved to 240mn shares from 170mn shares traded previously. A long lower shadow has occurred which in a downtrend indicates a bullish reversal, however, requires a confirmation. Meanwhile, a break above 42,128 will confirm the start of a recovery trend with 42,773 and 43,650 as the upside targets. However, any downside will find support in the range of 41,535-41,835 with major support at 41,356. JS Securities Limited recommends investors to ‘Buy on dips’, with risk defined below 41,356. The support and resistance are at 41,536 and 42,309, respectively.

DGKC: MACD generated a Buy signal

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

SNGP: Bullish Divergence on RSI

Strategy: ‘Buy on dips’ – targeting Rs29.80 and Rs30.27; stoploss at Rs25.40.