Karachi, October 20, 2022 (PPI-OT): KSE-100 expected to test its recent high

KSE-100 index posted a gain of 387 points to close at the 42,226 level. Volume stood at 250mn shares versus 190mn shares traded previously. The index has closed above the 50-DMA which will now restrict downside at the 42,086 level, followed by the 30-DMA at the 41,642 level. Meanwhile, the index is expected to re-test resistance at its recent high of 42,441 level where a break above that level will target 43,238 (200-DMA). The RSI has improved and the Stochastic Oscillator has generated a ‘Buy’ signal, supporting a positive view. Investors are recommended to ‘Buy on dips’, keeping stoploss below the 50-DMA. The support and resistance are at 41,955 and 42,381 levels, respectively.

OGDC: Engulfing Bull

Strategy: ‘Buy on dips’ – targeting Rs75.96 and Rs78.98; stoploss at Rs71.82.

MLCF: Limited downside risk

Strategy: ‘Buy on dips’ – targeting Rs30.37; stoploss at Rs28.29.