Karachi, October 10, 2022 (PPI-OT): KSE-100; Moving averages to restrict downside

KSE-100 index adjusted its previous gains to close at 42,085, down 75 points. Volumes stood at 313mn shares versus 443mn shares traded previously. The index is trading above the 50-DMA and 30-DMA that will restrict downside at 41,917 and 41,678 levels, respectively. However, any upside will revisit Friday’s high of 42,389 where a break above that will target 42,562, followed by the 200-DMA at 43,321. The MACD and the Stochastic Oscillator are heading up, supporting a positive view. JS Securities Limited recommends investors to view any downside as an opportunity to ‘Buy’, with risk defined below the 30-DMA. The support and resistance are at 41,922 and 42,319 levels, respectively.

PSO: Closed above the 30-DMA

Strategy: ‘Buy on dips’ – targeting Rs172.63 and Rs173.55; stoploss at Rs165.70.

PPL: Recovery expected

Strategy: ‘Buy on dips’ – targeting Rs63.65 and Rs66.64; stoploss at Rs58.05.