Karachi, October 14, 2021 (PPI-OT): KSE-100; Engulfing Bear – a sign of reversal

The KSE-100 index closed the session at 43,222, down 661 points. Volumes stood at 355mn shares as compared to 405mn shares traded previously. The current formation is an Engulfing Bear which in a downtrend indicates a bullish reversal, though, requires a confirmation. Meanwhile, a fall below the level of 43,068 will extend the decline towards 42,688. However, any upside will face resistance in the range of 43,485-43,910. Investors are recommended to ‘Buy’ at lower level, with risk defined below 43,068. The support and resistance are at 42,802 and 43,907, respectively.

OGDC: Upside target remains intact

Strategy: ‘Buy on dips’ – targeting Rs85.65 and Rs88.27; stoploss at Rs80.51.

HBL: Potential for further upside

Strategy: ‘Buy on dips’ – targeting Rs120.40 and Rs126.54; stoploss at Rs113.15.