Karachi, October 17, 2022 (PPI-OT): KSE-100; An Engulfing Bear – stay cautious

KSE-100 index after making a high of 42,237 slid to close at 41,949, down 137 points DoD. Volumes stood at 329mn shares versus 222mn shares traded previously. The index has dropped below the 50-DMA indicating potential further downside risk. The downside target is established at 41,630 which could later extend to the 41,412 level. However, any upside will face resistance in the range of 42,090-42,240 where a break above that will cause the uptrend to resume with 42,560 as the next target. JS Securities Limited recommend investors to stay cautious on the higher side and wait for dips. The support and resistance are at 41,818 and 42,158 levels, respectively.

HBL: Upside likely

Strategy: ‘Buy on dips’ – targeting Rs73.56 and Rs77.59; stoploss at Rs70.01.

PPL: Reversal formation

Strategy: ‘Buy on dips’ – targeting Rs62.08 and Rs65.70; stoploss at Rs58.05.