Karachi, November 09, 2021 (PPI-OT): KSE-100; Corrective trend ahead – stay cautious

Following its previous bearish formation (Long Upper Shadow), the KSE-100 index posted a loss of 181 points to close at 47,115. Volumes stood at 365mn shares versus 470mn shares traded previously. The current formation is an Engulfing Bear which indicates a corrective trend ahead. A fall below 47,021 will confirm the start of a corrective trend with 46,251 levels as the downside target. However, any upside will face resistance in the range of 47,200-47,600. The RSI and the Stochastic Oscillator have shown weakness, supporting the above view. Investors are recommended to stay cautious on the higher side and wait for dips. The support and resistance are at 46,943 and 47,365, respectively.

UBL: Correction expected

Strategy: ‘Sell on Strength’ – targeting Rs130.23 and Rs126.12; stoploss at Rs139.90.

ISL: Slide to continue

Strategy: ‘Sell on Strength’ – targeting Rs77.52; stoploss at Rs82.50.